This Act comes into force on a date to be appointed by the Governor-General by Order in Council; and 1 or more orders may be made bringing different provisions into force on different dates.
Section 2: Insolvency Act 2006 brought into force, on 3 December 2007, by the Insolvency Act 2006 Commencement Order 2007 (SR 2007/332).
In this Part and Parts 2 to 7, unless the context otherwise requires,—
Assignee or Official Assignee means the Official Assignee for New Zealand, the Deputy Official Assignee for New Zealand, and any other Official Assignee or Deputy Assignee appointed under this Act
bankrupt means a person who has been adjudicated bankrupt (see section 10)
charge includes a right or interest in relation to property owned by a debtor, by virtue of which a creditor of the debtor is entitled to claim payment in priority to other creditors; but does not include a charge under a charging order issued by a court in favour of a judgment creditor
company means any company within the meaning of the Companies Act 1993; and includes—
(a)
a building society within the meaning of the Building Societies Act 1965:
(b)
a society incorporated under the Incorporated Societies Act 1908:
(c)
a registered society within the meaning of the Industrial and Provident Societies Act 1908:
(d)
a society incorporated or registered overseas that is similar to any society in paragraphs (a) to (c)
court means the High Court
current summary instalment order has the meaning set out in section 355
document means a document in any form; and includes—
(a)
any writing on any material; and
(b)
information recorded or stored by means of a tape recorder, computer, or other device; and material subsequently derived from information so recorded or stored; and
(c)
a book, graph, or drawing; and
(d)
a photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable (with or without the aid of equipment) of being reproduced
goods has the same meaning as in section 16(1) of the Personal Property Securities Act 1999
Judge means a Judge of the High Court
lawyer has the same meaning as in section 6 of the Lawyers and Conveyancers Act 2006
Ministry means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act
ordinary resolution means a resolution of creditors passed in accordance with section 92(1)(a)
overseas company means a company that is incorporated outside New Zealand
prescribed means prescribed by this Act or by regulations made under this Act or by rules
property means property of every kind, whether tangible or intangible, real or personal, corporeal or incorporeal, and includes rights, interests, and claims of every kind in relation to property however they arise
provable debt has the meaning given to it in section 231(1)
Registrar means a Registrar of the court; and includes a Deputy Registrar
relative, in relation to any person (A), means—
(a)
A's parent, spouse, child, brother, or sister; or
(b)
the parent, child, brother, or sister of A's spouse; or
(c)
a nominee or trustee for any of them
rules means rules for the time being in force under this Act; and includes forms prescribed by the rules
secured creditor means a person entitled to a charge on or over property owned by a debtor
shares includes stock
sheriff includes any officer who undertakes the execution or process of any court
special resolution means a resolution of creditors passed in accordance with section 92(1)(b)
spouse, in relation to a person (A), includes a person with whom A has a de facto relationship (whether that person is of the same or a different sex as A) and a civil union partner
student loan balance means a loan balance under the student loan scheme established by the Student Loan Scheme Act 1992
supervisor means a person who is appointed under section 345.
a creditor of the debtor has applied under section 13 for the debtor's adjudication; and
(b)
the debtor has committed an act of bankruptcy.
(2)
The court's options in dealing with a creditor's application are set out in sections 36 to 44.
(3)
What is an act of bankruptcy is set out in sections 17 to 28.
12-
Adjudication on debtor's initiative
(1)
A debtor may be adjudicated bankrupt by filing an application for adjudication with the Assignee.
(2)
The requirements for a debtor's application are set out in sections 45 and 46.
(3)
The procedure for filing a debtor's application is set out in section 49.
Court adjudication on creditor's application
13-
When creditor may apply for debtor's adjudication
A creditor may apply for a debtor to be adjudicated bankrupt if—
(a)
the debtor owes the creditor $1,000 or more or, if 2 or more creditors join in the application, the debtor owes a total of $1,000 or more to those creditors between them; and
(b)
the debtor has committed an act of bankruptcy within the period of 3 months before the filing of the application; and
(c)
the debt is a certain amount; and
(d)
the debt is payable either immediately or at a date in the future that is certain.
Compare: 1967 No 54 s 23
14-
Application by secured creditor
The court must not make an order of adjudication on the application of a secured creditor unless the creditor has established that the amount of the debt exceeds the value of the charge by at least $1,000.
Compare: 1967 No 54 s 25
15-
Court's permission required for withdrawal of application
A creditor may only withdraw an application for adjudication with the permission of the court.
A debtor must not be adjudicated bankrupt on a creditor's application unless the debtor has committed an act of bankruptcy within the period of 3 months before the creditor files the application.
(2)
The acts of bankruptcy are set out in sections 17 to 28.
17-
Failure to comply with bankruptcy notice
(1)
A debtor commits an act of bankruptcy if—
(a)
a creditor has obtained a final judgment or a final order against the debtor for any amount; and
(b)
execution of the judgment or order has not been halted by a court; and
(c)
the debtor has been served with a bankruptcy notice; and
(d)
the debtor has not, within the time limit specified in subsection (4),—
(i)
complied with the requirements of the notice; or
(ii)
satisfied the court that he or she has a cross claim against the creditor.
(2)
The form that the bankruptcy notice must take is set out in section 29.
(3)
The debtor must have been served with the bankruptcy notice in New Zealand, unless the court gave permission for the service of the notice on the debtor outside New Zealand.
(4)
The time limit referred to in subsection (1)(d) is,—
(a)
if the debtor is served with the bankruptcy notice in New Zealand, 10 working days after service; or
(b)
if the debtor is served outside New Zealand, the time specified in the order of the court permitting service outside New Zealand.
(5)
In this section, a creditor who has obtained a final judgment or a final order includes a person who is for the time being entitled to enforce a final judgment or final order.
(6)
In this section, if a court has given permission for enforcing an arbitration award that the debtor pay money to the creditor,—
(a)
final order includes the arbitration award; and
(b)
proceedings includes the arbitration proceedings in which the award was made.
(7)
In subsection (1)(d)(ii), cross claim means a counterclaim, set-off, or cross demand that—
(a)
is equal to, or greater than, the judgment debt or the amount that the debtor has been ordered to pay; and
(b)
the debtor could not use as a defence in the action or proceedings in which the judgment or the order, as the case may be, was obtained.
Compare: 1967 No 54 s 19(1)(d), (2)
18-
Disposition of property to trustee for benefit of creditors
(1)
A debtor commits an act of bankruptcy if, in New Zealand or elsewhere, the debtor disposes of all, or substantially all, of the debtor's property to a trustee for the benefit of all or any of the debtor's creditors.
(2)
This section is subject to section 41(3)(a).
Compare: 1967 No 54 s 19(1)(a)
19-
Fraud or intent to prefer a creditor
A debtor commits an act of bankruptcy if the debtor takes any of the following steps fraudulently or with an intent to give any creditor an advantage over other creditors:
(a)
disposes of his or her property, or part of it:
(b)
creates a charge on his or her property or gives any security in it:
(c)
makes any payment:
(d)
incurs any obligation.
Compare: 1967 No 54 s 19(1)(b)
20-
Departure from New Zealand
A debtor commits an act of bankruptcy if the debtor takes any of the following steps with intent to defeat or delay his or her creditors:
(a)
departs, attempts to depart, or prepares to depart, from New Zealand:
(b)
if the debtor is already outside New Zealand, remains there.
