Here is a comparison, highlighting how the different options balance privacy, flexibility, and protection from creditors
| Feature | Debt Repayment Order (DRO) | Informal Creditors Proposal under S55 CCCFA Hardship |
|---|---|---|
| Privacy | Public. Listed on the public Insolvency Register. | Completely private. A quiet, confidential negotiation strictly between you and your creditors. |
| Flexibility | Rigid. Fixed 3–5-year payment plan based on strict, standard budget allowances. | Maximum flexibility. No statutory rules. You can negotiate any terms, timelines, or debt-forgiveness arrangements the creditors will accept. |
| Court / Government Involvement | High. Managed by a Supervisor and overseen by the government’s Official Assignee. | None. No court, no Official Assignee, and no formal legal process involved. |
| Creditor Protection | Statutory shield. Stops collection actions once the order is finalised. | Negotiated shield. Stops calls and payments immediately once creditors are advised. Does not legally bind any creditors who refuse to participate. |
| Debt Limits | Capped at $50,000 of unsecured debt. | No limits. |
| Impact on Credit | Heavy impact on creditworthiness and limits borrowing over $1,000. | Impact on credit score but no statutory restrictions. You can continue as usual under the new negotiated terms. |
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A No Asset Procedure is a formal, one-year legal process designed to clear unmanageable debt for individuals who have no way to repay what they owe.
| At a Glance | Key Requirements & Outcomes |
|---|---|
| Total Debt Limit | You must owe between $1,000 and $50,000 in unsecured debt. |
| Asset Rules | You must have no realizable assets to sell. (Note: Basic household furniture, tools of trade, and a modest vehicle are protected). |
| Income Rules | You must have no surplus income left over after paying for your essential living and family expenses. |
| Duration | The procedure typically lasts for 1 year. |
| The Outcome | Upon successful completion, your included unsecured debts are legally discharged, giving you a fresh start. |
| Eligibility | You cannot have been bankrupt or completed a NAP previously in New Zealand. |
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You do not have to navigate this alone. The longer you wait, the fewer options you have. Reach out today for a 100% free, confidential chat.
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