How To Undertake a Bankruptcy Search in New Zealand
What is the Bankruptcy Process For Individuals in New Zealand?
Insolvency Act 2006 No 55 (as at 30 September 2021) governs bankruptcy in New Zealand.
The bankruptcy process in New Zealand is initiated by the debtor. The High Court, after considering the finances of the debtor, will declare that the debtor is insolvent and unable to pay debts. If successful, the debtor’s property will be transferred to the custody of the Official Assignee and given to their creditors.
Bankruptcy usually lasts for three years in New Zealand.
Who can benefit from a bankruptcy search in New Zealand?
An individual or company, in the UK, who transfers funds from an estate to an individual or a company who is bankrupt in New Zealand, will be subject to section 25 of the Administration of Estates Act 1925. This declares that money must reimbursed from any losses incurred - there is no putter limit to this. Additionally, Section 1 of the Trustee Act 2000, also applies to personal representatives by virtue of section 35 of the same Act.
To read more about the importance of commissioning a bankruptcy search click here to read our blog on why are beneficiary bankruptcy searches necessary in estate administrations.
A bankruptcy search in new Zealand mitigates the risk of the personal representatives and/or their solicitors being subject to a claim for compensation from a bankrupt beneficiary’s creditors.
Conveyancer’s potential liability follows the reasoning in the case of Edward Wong Finance Co Ltd v Johnson Stokes and Master [1984]. The case illiterates the importance of conveyancers conducting bankruptcy searches as standard practice. Do not risk your professional and legal liability.
There are several other situations where an individual or company will require to protect themselves, their company or a client from legal responsibility by discovering the bankruptcy status of an individual in New Zealand. As an individual that is insolvent and at risk of losing control or ownership of their property or other assets can be financially fatal for anyone or any company doing business with them.
The disastrous consequences for not commissioning a bankruptcy search in the New Zealand outweighs the low cost and ease of commissioning a bankruptcy in New Zealand with International Bankruptcy Searches.
How can I check if someone is bankrupt in New Zealand?
You can order a search of the New Zealand’s bankruptcy register via our website and we will provide you with a report to confirm whether the individual is subject to bankruptcy proceedings in New Zealand.
You will need to provide the following information for the person you wish to search:
Full name
Date of Birth
Address
Conducting a bankruptcy search in New Zealand mitigates the risk to the personal representatives and/or their solicitors being subject to a claim from a bankrupt beneficiary’s creditors.
For more information about bankruptcy searches in New Zealand, including the price, timescale and how to order, click the order button below.