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Ford last won the day on December 14

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  1. Kiwisaver and bankruptcy continued

    An update on student loan debt. It would generally get written off in a bankruptcy. Mine has been. The Tax Administration act requires that IRD write off debt, but only if there is no chance of them being not able to recoup the money during the term of the bankruptcy. That is up to the Official Assignee to decide when a bankrupt can make contributions to a bankruptcy. But there is an income threshold that must be crossed before bankrupts must pay money to the OA. That threshold (for a single person with no dependants is just under $30,000 per year). The weekly repayment threshold I think is $20 per week or more. The three year bankruptcy term is for the Official Assignee to take the assets and distribute them to the creditors. After they pay themselves first. This is one reason why I am wanting a bill to go through parliament because the OA can clock up hundreds of thousands of dollars in new debt administering just one bankrupt's estate. The bankrupt must pay that if they have the money, then the petitioning creditors court costs, lastly the actual creditors only get paid after that. If the bankrupt doesn't have the money, then that administration debt falls on the tax payer. Already the new debt against me in 5 months is more than $11,500.00 plus the original creditor debt still exists, until I am discharged in three years.
  2. Using savings to pay off debt?

    Becoming bankrupt is a huge life changing experience. When I look back over the years prior to April, I can see now how my debt was gradually increasing over the years. I needed to actually build new habits - which I am still working on today. Because being in debt for me was just a way of life. Its like a security blanket as well, if you run out of money, just call up the bank and increase your overdraft or your credit limit, in a phone call that takes less than 10 minutes. A feeling of relief comes over you knowing the money would always be there. There is a lot of psychology around money and debt. I caught myself one day when I wanted to make a purchase and for a split second the thought and the image came into my brain - I'll put it on the credit card. Prior to the bankruptcy I would have acted on that impulse. I do think more carefully now, but its still hard to change old habits. Its most important to first know if you are actually insolvent, because that has legal consequences and our laws do not adequately protect the debtor from ruthless debt collectors and their solicitors. Yes they exploit the legal loopholes in our laws also. When I realised I was insolvent after doing the networth and budget excerise I decided to do something about it, but it was too late then to change the outcome because my debt was too large. Even then though, the banks still kept trying to offer me more lending by way of consolidation loans. When I realised what they were actually doing, and why they were doing it, I finally said No More. Things got ugly when they realised I was going to have to default on the debt. Over a persons life time they can end up paying thousands and even hundreds of thousands of dollars to a bank or credit card company in lending and interest. They calculate what is called the life time value of the customer. Banks also retain customer profiles for life, even if you close your account and go to another bank. What bankruptcy doesn't teach you directly is how to generate wealth and create lasting cashflow. Thats what I have missed out on being in debt. I missed out on learning valuable money management and life skills. Get a plan and the strategies that others have mentioned in these posts will hold you in good stead. You're lucky you still get to chose how to pay back your debt, and how you spend your money.
  3. Using savings to pay off debt?

    Hi, Thats an important question. I don't know the answer, but I can give you some advice from the point of view I speak from, and that is as a a bankrupt. That is where my indebtedness led me. What I realised too late was that the party was over long before I realised it. So I was left to try and pickup the pieces. One of the most important things was for me, was to find out immediately if my debt was actually increasing overtime, before I made any decision. I created a spreadsheet, picked the last day of the month and rang each bank and listed all of the actual cash I held with each bank. I then listed all of the debt I owed. I arrived at a networth figure that was minus. I then did the same excercise for the previous two months. Getting the figures as to how much cash I had as to how much debt I had. Over three months my debt was actually increasing. My regret is that I did not do that exercise when I first took on debt, if I had I would not be bankrupted today. Three months is enough to see a pattern forming. Next I created a budget and the important thing was that whilst repaying my debt I could not afford basic living expenses. And that was part of the reason my debt continued was because I didn't ensure my income at least met basic living before anything else. That is the most important consideration. Because if you were to default on debt, you still need to pay basic living expenses regardless of whether you are in debt or not. Try and have separate savings which should be at least three months worth of living expenses in case you lose your job. You may be able to forward pay some utility providers like your power and phone. I do that. If you have a lot of living expenses, work out how much they cost over a year and then pay them a fixed amount each month. Put money aside in named accounts for other things like car maintenance etc and only use those accounts for that purpose. You can budget for those also for the year. If you know the term liquidation. It is when company goes bankrupt. Directors and financial advisors that allow that to happen have much more skill than just being able to budget, but still they incur too much debt and their businesses fail. Your spending habits are typical of a lot of people, I think. If you can afford to pay off the debt in its entireity over a three to five year period, without getting further into debt, then that could be an option. The way to protect your cash or any other asset is to put a legal framework around it, like a trust or a company, or purchase an appreciating asset, or at least something that will hold its value. I made the mistake of using debt to buy liabilities. Resolve to never do that again. If you use debt it should be at least to create an asset and use it for one specific purpose. For me, I have terrible impulse control so I have to set up specific things in my enviroment to ensure I can't get into debt again. Focus on cashflow and building income, and this may sound stupid but you need to protect it like there are wild dogs after it. Donald Trump uses the term, sharks. Because if there is one thing that I have learned being bankrupt, is not only does your debt not reduce in the period of the bankruptcy, but that the government will stop at nothing to make sure they will take all the available cash and assets of yours that can be converted to cash. And that includes forcing you into further hardship. The banks and lenders, and indeed the goverment use tremendous tricks and legal strategies to keep people in debt for life. They can do so because often we are not smart enough to know what we are truly taking on when we borrow money. Corporates survive on our lack of education. My opinion, the best thing you can do for yourself and your family is to first, stop incurring new debt. Then get educated about how money works and focus on building real wealth. Even if you spend an hour a week to start with and then build it into a daily habit. If you can spend even 15mins each day learning how to become wealthly, you will be light years ahead of the rest of the population. Another skill to learn is the art of negotiation. From a banks point of view you are not good at it if you have debt listed on your credit reports. To get out of debt before you become actually insolvent you need strong negotiating skills. There will always be people and organisations that will stop at nothing to get you to hand over your cash, that is the "party" you mentioned. Let my bankruptcy story be a lesson in what happens when you get too far down the debt road, please turn away from debt and take control of your life, while you still can. Ford.
  4. Change our bankruptcy laws

    Hi, I don't know the answer to that yet, but I will try and find out. This is part of the reply from the NZ Gazette. "We have recently reviewed our procedures and access to published information, and as a result we will not be restricting access to published Gazette notices online. The New Zealand Gazette is the journal of constitutional record, and blocking access to notices, whether they be current or historic, is inconsistent with its purpose of making information part of the public record. This includes access through search engines such as Google. The Gazette publishes notices provided by others and is not responsible for the insolvency process or the insolvency legislation. Notices must be published in accordance with relevant legislation which, as above, means notices will not be amended or removed from public availability. However, if there is a concern in regards to your safety, please send through evidence, for example a form or letter from a relevant agency, so we can consider your request. We would also need to liaise and get agreement with the Insolvency Office, who is responsible for the notice, for any potential changes." there are different laws, like the insolvency act, that allow certain information to be made public. That law was made in 2006 and the internet wasn't the same back then. Originally I think it was to give creditors some way of finding out if a person who was bankrupt tried to continue borrowing money or using the bankruptcy laws to get out of paying their debts. A lot of our laws are years out of date. NZ follows a lot of what other countries do, and the term "debtors prison" has been around for centuries. Bankruptcy is the modern version of it. Borrowing money and not paying it back is still a crime today. In law, it makes no difference whatsover as to the circumstances that the insolvency occured. The jails would not be able to hold all the people who default on debt so all they can do is to ensure that label stays with them for life and strip away our privacy and legal rights. Once a person becomes bankrupt the OA's job is to try and recover the money from the debtor. They then look for crime. They do a lot of work behind closed doors looking for evidence. The three year term is so the OA can use that timeframe to recover money from the debtor. Money is also the big driving factor, and the OA won't bring any claims to court if they cannot retrieve money from the debtor. In the insolvency act there is only one small section of law that absolves debtors from being prosecuted, and that is section 427 which states that the bankrupt must prove they had no intention to defraud creditors. Again the assumption of insolvency is that the debtor has committed a crime. That's why the penalties are so harsh and life long. The Gazette is a journal of constitution, apparently. Well that constitutional record is violating our privacy, and making us more vulnerable to identity theft. Even Veda's (Equifax) credit report passwords are not secure, that information can be obtained via the information that is made public on the insolvency office website. Bankruptcy quite literally shows our laws do not consider the wellbeing and the rights of the people first. Because they do nothing to stop the corporate crime and corruption that runs rampant in our country. People who have formal insolvency procedures forced against them, become part of that corrupt system whether they like it or not. Our outdated laws have created serious legal loopholes that are being exploited. The government is aware of what goes on. But when corporations are behind it they are slow to do anything about it. All we can do ourselves is to educate each other about the truth, and keep campaiging to change our laws so we don't continue to be taken advantage of. It takes two parties to create debt. I've worked in the accounting industry long enough to know that our lack of financial and legal knowledge is being severely exploited. We need to stand up and protect ourselves, because there is nothing that I have seen thus far, that leads me to believe that our government intends to even begin putting right the terrible injustices that continue to plague the good people of this country. Ford
  5. Change our bankruptcy laws

    I'll post this again. Something has gone wrong with the text Journal updates Update for December 2017 The bankruptcy story was to be published in the Senior community paper but after being in circulation for just a few months that paper is closing. So I guess that will go on hold for awhile. In the meantime other developments. I requested a copy of my file that the OA holds against me. What a shock to find an email in amongst it. It seems that Mr Warwick Jones (insolvency watch) has been calling up the OA's office and asking about my personal life. Its really horrible being stalked by that man. I contacted the OA and they withheld my address on their insolvency register. I also contacted the DIA. I learned that the insolvency watch website picks up the listings from the NZ Gazette. This is the same person who I mentioned in the earlier post. There is something tremendously wrong with our government systems when a random person can ring the OA's office and discuss the private life of a bankrupt. Mr Jones is not even a creditor in the bankruptcy against me. If I don't hear back from the DIA, I will try and get a restraining order. Cross your fingers for me that I can get legal aid. The other information on the file held by the OA, is the threshold for the repayment of bankruptcy debt. For a single person it is just under $30,000.00 per year. I don't know if that is gross or net. But I suspect it is net. Repayments also have to be more than $20 per week. Also the OA writes to the banks and advises the banks should let them know if the bankrupt holds more than $1200 in the bank at any one time. I asked the OA if they could increase it to $5000 but again the laws prevent that. The bankrupt is only allowed to hold $1200 in a bank account for the purpose of maintenance. You cannot save any money towards emergencies or other living expenses when it exceeds that amount. Currently I only work parttime and have medical issues, which the OA knows about. I wanted to save enough so if I had to stop working due to ill health I would have enough money to pay my rent etc. But this is not allowed. I can't save any money either towards retirement. The only thing I can do is to withdraw excess money from my bank accounts. The OA does take bankrupts to court to force them to pay them money if they are earning over the threshhold. I will try and find out more about the threshholds, apparently the information comes from WINZ. Other information - the OA's trust account is with ANZ Bank I read the Coalition agreement between Labour and NZ First, (the parts that were published) and in it is a sentence that states:- "Investigate growing KiwiBank’s capital base and capabilities so that it is positioned to become the Government’s Banker when that contract is next renewed" Thats it for now. I'll post again after xmas Please don't get into debt this xmas. If you are in debt, then make it a rule to never file for any insolvency procedure. Bankruptcy and NAPs are made public for life. And you don't want Mr Warwick Jones asking the OA about your private life. Its just not worth it, people. Ford
  6. Expense tracking...

    Hi I did send you an email on 23rd October Did you not recieve it? Ford
  7. Change our bankruptcy laws

    October 2017 Hi Progress so far. I have contacted the Auckland Council to ask about their bylaws. One of the members of the Birkenhead Residents Association is making public on his personal website the names and addresses of people who are bankrupt. A complaint to the guy resulted in him changing the coding on his website so now my name appears in bold font so it stands out. There is nothing the Auckland Council can do. I was hoping they could ask him to take down the insolvency pages, but no action was taken. As part of my research, I will write to the residents of Birkenhead who appear on this man's website also and see if they will complete a survey. I made a request to the Official Assignee for the entire contents of the estate file they hold against me. I have to wait 20 working days but hopefully it will fill in some gaps. I have spoken to the IRD to try and get information about the debt they sent through to the OA. The IRD's insolvency office is supposed to be calling me this week. I've also been speaking to a company called Financial Services Complaints Ltd. (FSCL) Baycorp is one of their members. But EC Credit Control is not. I asked what is the difference because to me they are just debt collectors. But there is a difference. A very significant one. The members of the FSCL are actually debt buyers. Debt buyers have to be part of an external disputes resolution scheme. They just might be able to tell me who in fact has legal right to the debt against me that Baycorp has tried to collect on. It was originally with ANZ then went to Collection House then on to Baycorp. This is part of the huge legal loophole that lets debt collectors harrass people and try to force them into contracts. As I understand it, debt has two parts, the debt equity which can be sold, or the entire contract can be sold so the debt collector then becomes the legal creditor. ANZ's district court claim against my company, they were listed as the Plaintiff, not Baycorp. But as with the BNZ debt against me, the same lawyer can represent both the creditor and the debt collector, this occurs with Baycorp and ANZ as well. The solicitor who signed the court documents as solicitor for the plaintiff ANZ, turns out to be an in-house lawyer for Baycorp. The document server rang me up wanting me to meet him away from the property, rather than bringing the documents to the registered office of the company, which is what is the correct legal process. There are lots of pieces of deception like that, that I conclude that the reason for collector harrassment and there being any lack of supervision in the industry, is to force the debtor to enter into a contract with the debt collector. Because now the debt is outside of the banking regulations. That means any obligation between the original creditor and debtor ceases to exist. The rights that the debtor had agreed to wth the creditor under an original contract also cease to exist. So the debt collector is free to add any costs they like to the debt. I actually received an email from Neighbourhood support head office warning that debt collectors have been contacting their co-ordinators trying to get information from them. This is a pure violation of privacy, but because of our laws, there is nothing stopping them from them doing so. Debt collectors also contact accountants as well, asking for contact information. Just like the member of the Birkenhead Residents Association making public our private information. This is just one reason why debt collectors need to be regulated. Something else I found out about the banks relating to debt. Shadow banking. Anyone heard of it? Its a practice that Kiwibank use. Thats all for now. I still have to write to the NZTA. Thats the next job. And while I'm on the subject of privacy, please make sure you don't give out other people's private information to anyone, for any reason. I say, treat debt collectors the same as you would for any financial scammer. Debt collectors operate outside of our laws and are violating our rights. Yes some people do enter into agreements with debt collectors, but can you be sure that you do actually have a legal obligation to pay them. How do you know they are not adding collection costs and charging rates of interest that were never part of an original contract with the original creditor. Your legal obligation is to the original creditor, don't be tricked into agreeing to debt or repayments with a debt collector, because you will lose your legal rights, even to dispute the claims in court.
  8. How to spend the banks way

    This from a blog article post by a large NZ bank. "Spend the bank’s money This one sounds enticing, doesn’t it? If you know you can pay off your card in full at the end of the month to avoid paying any interest, then go ahead and use your card to buy stuff during the month....." My version of what that post should say "Spend the bank's money. This one sounds scary, doesn't it? And it should be. Cost of borrowing is extremely expensive. If you know you can pay off your card in full at the end of the month to avoid paying interest, well done. Just make sure you don't continue to use the card to buy stuff you don't need" See the subtleness of the bank's post. They are asking a question that uses a word to temp your impulses. Asking questions actually triggers the brain to find a response. Enticed means to attract or tempt by offering pleasure or advantage. Ford
  9. Expense tracking...

    Hi Yynz Thanks for your interest. I have noted your email and will send you one over the weekend. People don't realise there are a lot of subtle influences that affect our behaviours and actions we take. For me personally I have had to learn to become more self aware and actually notice when I am acting on my impulses which are driven by the lower parts of the brain as opposed to planning and making better decisions based on what is right for my situation. That process is done by different parts of the brain. Advertising and marketing is designed to trigger impulse buying. I love to use fishing as an example. Businesses tempt you with cheap and free gifts, then once they have hooked you, they get you to sign a contract (reel you in) so you will be paying money to providers of goods and services for years to come (think about the fish on the top of the rod). That could be why people blow their budgets and can't stick to them. Addictive purchases like gambling, alcohol, food etc don't seem to make it correctly on to a budget either. So the budget may not have been workable from the beginning. Everytime a new purchase is made a new expense needs to be added to the budget and the figures have to be reworked. So if you can solve that problem would be a tremendous step forward. Banks and money lenders go to a lot of effort to make sure its simple and easy to get into debt. They lull you into a false sense of security. To answer your questions I use an eftpos card or a travel card, which works like a debit card. I do not have a credit card. I don't generally use cash, but one of the family budgeting services do teach people to use cash. I haven't tried it long enough to see if it works. Some strategies I use that work are using the word "hardship" on my side of the online banking payments I make to one of my voluntary creditors (from the bankruptcy). If you hand over a bankstatement to a potential lender with hardship listed regularily on it, they are going to run mile. I actually saved hundreds of dollars and still had the cash to actually pay for the item. Whilst I'm not the best at sticking to a budget, I find it works to have separate named bank accounts like Emergency, household replacement, legal, car repairs etc. And only put money in or out for the purpose with which its intended (amounts which match my budget) How to find people - become a debt collector and offer your services to accountants and be an advocate for the debtor. Talk to community groups who help low income families. Christians Against Poverty (CAP) are always looking for volunteers to help with their debt centres they are setting up. Join a budgeting service. Network with all sorts of people in the community. Go to the industry leaders and influencers of various sectors who help people with finance.....etc etc. Hope that is useful. Ford
  10. Expense tracking...

    Speaking as a a bankrupt, even before I became so, following a budget is tremendously difficult for me. A lack of self control is huge issue in overspending. The banking and debt collection industries also prey on people who are easily persuaded and lack self control. Even though I was in debt substantially to ANZ they still rang and offered me money (which I stupidly accepted) with no contracts to sign for three months. They then overstated substantially their Uncommitted monthly reports so it would look like I could easily afford to pay back the money. It wasn't until several months later I realised I had been severely screwed and trapped into debt, quite simply because I said Yes to the banks offer. Even though I am bankrupt the Official Assignee has forced a further $11,000 in new debt against me in bankruptcy admin costs. No budget will help with that. Today I still pay back the debt to original creditors outside of the bankruptcy system, because creditors won't get paid otherwise because the official assignee gets paid first. And continuing to pay creditors will be a deterrent so I can never get into debt again, and should stop the courts from forcing further debt against me. Financial literacy was not taught in school when I was there, nor was I taught it by my parents. For me I have had to learn to quite literally create new habits and skills to even just survive on the cash I have. I have now set up specific deterrents in my enviroment so I cannot be lured into debt. And those strategies actually work well. I do have poor impulse control and its taken years to learn how to make better decisions and learn how not to follow cravings and impulses. I do have a budget, and cashbased networth position spreadsheet which I created myself from scratch. They help me to see the truth about my financial situation. But what they can't do is to control the urges and cravings I have to sometimes spend outside my budget. Money lenders spend substantial money marketing to people like me who are uneducated and unskilled. I have had to learn very strong strategies to stop being lured into further debt. One of those strategies is to close a bank account with a NZ bank who uses, what they tell me is called shadow banking or shadow limits, that they don't make known to the public.
  11. Credit Card Debt - The best way to pay it off?

    As I understand it, banks and credit card companies onsell either the debt or the risk to other investors. (it gets bundled together to form new investments) Investments have certain "grades" or rartings, depending on the liklihood of default. The lower the credit score the higher the chance a borrower may default on their loan. When the stock market crashed 10 years ago, (to cut a long story short) it was found that loans had been given to people who could not afford them, they had very poor credit histories and very low credit scores. The lower your credit score the higher the risk of default. When I was well into my debt four years ago, I had a credit score of 660. In two years that score has been reduced by half due to defaults being listed on it and due to manipulation of my credit report by Veda. My credit report is now about 25% accurate. And as a bankrupt, Veda (Equifax) do not give me a credit score. There is no law in NZ that prevents any creditor or debt collector from listing false information on your credit report. By that I mean if you discover wrongful information listed against you, its up to you to provide proof that the content is wrong. The credit reporter is under no legal obligation to change the information. Thats where the messy part of agency law comes into the mix. The Privacy Act only really works if you the debtor can prove some harm has come to you for wrongful information being listed against you. A bank manager told me that the purpose of a credit report is to show any defaults. Some banks may also have score thresholds in that if you are below a certain score you may not even be able to be a customer of the bank. SBS bank will not accept customers if there are defaults on a persons credit report. I have that in writing. Kiwibank seem to be able to open accounts without any listing going on a credit report. When I opened an account with them I asked them not to put an entry on my credit report (they know I'm bankrupt). And I am pleased to report they haven't. I of course had to sign the new documentation which includes a privacy waiver and gives the bank the right to pass my information to a credit reporter (this is the case with all banks). Credit reporting is actually a form of control. The accounting software company Xero also partners with Veda (Equifax). As do banks and many other corporations. Our personal data and credit histories are valuable to others and we are the mugs that keep handing information to them. The second page of a Veda credit report actually says "your credit history may be one of your most valuable assets..........." Thats a load of crap. Most people don't know they even have a credit report until a lender refuses them money. Everything is about the money. That's all anyone ever wants. If your not passing over your cash through some product or service, then they get you with your personal data, that can be collected and sold for profit. Think also loyalty cards, flybys. And how strange that Countdown is now offering insurance products and have their own pharmacy. Those industries are internationally extremely profitable for investors. Credit reporting is all a part of that same financial system. Its in existance because we are gullible and keep supporting it. You'll never hear any politian make an election promise of ditching credit reporting. But they should. I did not vote in this election, nor will I again until the goverment changes the laws around banking and debt. Let me know If anyone would like to see a copy of my credit report. I don't mind sharing it. Ford
  12. Change our bankruptcy laws

    Hi, It seems it does hold some interest. I have been contacted today by a writer for a community newspaper, who wants to do a story. I don't know which paper and nothing is confirmed yet until we meet up in a few days, but its a promising start. Thanks for the names. I'll make a note of those. There is still much I can research, but I have already hit a couple of walls, and that is where contractural arrangements with debt collectors are entered into by the banks and government with debt collectors, contracts that we the public are not allowed access to. But that is where the answers lie, and I believe they may also lie with the Government's debt management office. Who ever investigates are going to have to have tremendous courage to unveil those secrets. Ford
  13. Change our bankruptcy laws

    Hi, thank you for your questions. I have noted it. The short answer is no I haven’t yet approached anyone. But that is not to say there won’t come a time when it will be right for an investigative reporter to look into our bankruptcy laws. I would like to have an article printed first to see how people respond to the issues that I will bring to the table. I still have much research to complete. I would like there to be a proper formal government enquiry, so our laws can be changed. Bankruptcy is a very taboo subject, people don’t like talking about it. It should be discussed of course because substantial public money goes into the very hidden bankruptcy regime. So not just any reporter would be suitable. For all the issues I have uncovered, and for my part in accepting debt offerings from the bank, and then being made bankrupt, I have been lucky to have people treat me with kindness. For them and the decent people of our country they deserve an investigation by someone who has integrity and who would not bias or manipulate the findings.
  14. Change our bankruptcy laws

    September 2017 Hi, CONTINUING THE JOURNEY. I went to the meeting of the Greens and asked my question about debt and poverty. Because their focus is towards low income and beneficiaries who are in poverty, debt is only in reference to WINZ debt. They mentioned one of the government child services I could enquire as to statistical data that they may or may not have. I might look into that later. Otherwise it appears that there will not be a lot of statisical data on how debt contibutes to poverty. I had already contacted the coronors office and they also do not keep stats on people who commit suicide because of debt. The labour party also said that they don't have policies on the level of detail I require. I have prepared a draft viewpoint for publishing in the Canterbury Today magazine. Don't know if they will accept it, because not just anyone can submit articles. I had a meeting with a regular contributor to the the View Point and got some feedback on my draft. After several months I finally received a letter from the Guardian Trust about Kiwisaver. And that was only because they first had ANZ contact me, which was a complete waste of time. Under the current laws there is no way to get out of Kiwisaver unless I emigrate to another country permanently or take it out at retirement. So there stays the government contribution with ANZ continuing to take their fees. My company has now been struck off because I am bankrupt. There was no point in me spending the money to take the Companies Office to court to retain the company because only solicitors can represent a company in the High Court. It would have cost thousands to only be told by the Judge that a bankrupt cannot be a director. I have received an application from WINZ for the accomodation suppliment. Before I was bankrupted I hadn't needed to apply for any benefits. New debt. Received a timecost report from the Official Assignee and wow, 5 months into the bankruptcy and the new debt against me which started the day I became bankrupt is now more than $11,000! At the same rates, I estimate that by the end of the bankruptcy the OA would have clocked up around $60,000 in new debt. That is more than the entire creditor debt lodged in the bankruptcy against me. Case law I was reading showed another bankrupt had nearly $200,000 in new debt against them for bankruptcy administration over three years. Wow. When I meet with the MPs I will ask about that because there are nearly 2000 bankruptcies in NZ every year. The OA takes their fee first before any creditors, and if there is not enough to pay their costs then the tax payer pays it. Public money is used if there is no money that can be retrieved from a bankrupts estate. They have now closed off the bankruptcy administration. To the bankrupt, that means nothing. Here is part of the estate report "........ability to pay contributions will be reassessed if her financial circumstances improve during the course of her bankruptcy..............." Remember people the OA has access to your bank accounts. All bankruptcy means is that creditors cannot themselves collect on the debt from the debtor. They have to put a claim in the bankruptcy estate. But the debt still exists. Unless a creditor actually writes to you and tells you it has been written off. I am still paying original creditors outside of the bankruptcy regime, and I receive student loan statements from the IRD. I spoke to two IRD staff who told me that student loan debt actually "gets capitalised and put on to the new IRD number." "Oh really" I asked. I'm waiting for that to be confirmed in writing but they have told me that mine will be written off. They also get a copy of the estate report that will show I do not have any assets. In the meantime I am paying them also and the balance is reducing. It will be interesting to see if they do write off the student loan now that the bankruptcy admin is closed by the OA. Next mission - writing to the CEO of NZTA to see if they will stop the debt collector they used from holding any profile against me now that I am bankrupt. According to the debt collector themselves, they say they must retain records for auditing purposes. I asked them who audits them, given they are not regulated by any government. They chose not to respond. I'll update again in Oct. If you think of anything about our laws that you would like changed in terms of debt collection and bankruptcy, please share it with us. PS I managed to get myself on the mailing list for the NZ Debt Management office of the government treasury. They have put out the next bond tender schedule if anyone is interested. Ford
  15. Hi I posted earlier about kiwisaver and bankruptcy I still have not had any response from the Guardian Trust. It may be that they don't respond to kiwisaver issues from individual members of the public. I have however had another response from the OA. "If an undischarged bankrupt’s kiwisaver funds remain in their Kiwisaver during the bankruptcy term they are protected from the Official Assignee and are not an asset in bankruptcy. The Official Assignee will not make claim on Kiwisaver funds once you (specific to me) are discharged from bankruptcy or turn 65. If during the term of a bankruptcy an undischarged bankrupt makes an application to withdraw their Kiwisaver under hardship and the application is accepted by the fund provider, on release the Official Assignee could make claim to funds as a bankruptcy asset." So what that means is as long as you don't put significant deposits into kiwisaver or withdraw it under hardship while you are bankrupt then the OA probably won't touch it. Unless they deem you to have purposefully put money in there to divert it from creditors, they can take it. Remember they can look back five years. My advice - speaking as a bankrupt, if you wish to continue with Kiwisaver while bankrupt, don't make any withdrawals under hardship while you are an undischarged bankrupt. Stick to making regular contributions. Be consistant with amounts and deposits into your bank account in general. Anything irregular could be deemed an avoidance to pay creditors. I asked if the OA can disclaim the Kiwisaver but they can't because its not actually deemed an asset in and of itself, however the money withdrawn under hardship is an asset that rests with the OA. If you want the OA to disclaim any assets, so you can keep them you have to apply to the court. Its also worth noting that whatever assets the OA claims over the entire 3 years of bankruptcy, you never get those assets back. So for the time you are undischarged don't accumulate any substantial cash, or anything that can be called an asset. Also its worth knowing (as mentioned in my previous post) that the kiwisaver provider itself does not need to provide the OA with the kiwisaver transactions. The provider itself can actually make a determination as to whether you have been putting money into kiwisaver in lump sums or in amounts that are disproporiately large in relation to the Employer contribution. If it deems you to have been, then it will forward the transactions to the OA. Kiwisaver funds are also assets for the OA if the bankrupt dies whilst undischarged. So there are permitted withdrawals that the OA can take from Kiwisaver. My next mission - student loan debt. The supervisor of the IRD tells me that student loan debt is not written off in a bankruptcy. Instead it is capitalised and transferred to the bankrupts new IRD number! And the Tax Administration Act no longer applies because I am bankrupt.