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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22489
Experience:  37 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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I recently shut down my business as it was not profitable

Customer Question

Hi – I recently shut down my business as it was not profitable and on the verge of collapse. As a result I have some secured and unsecured creditors to pay. I have no assets other than my house contents and vehicles on HP.I have gone back to my previous full time employment
1. If a creditor takes me to court to liquidate, what implications does that have on me as the director? Does it mean I am then insolvent?
2. With the business, all my credit cards fell behind and I have been handed over to BayCorp for collection. What will happen if I cant pay baycorp?
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.
You have a number of options including applying for bankruptcy or if your debts are below $40,000 then you can apply for the No Asset Procedure. If your company is liquidated then you are not liable for the debts, unless you have also given a personal guarantee. But you will remain liable for the credit cards, and you can negotiate time payments with Baycorp. If that is not possible then bankruoptcy may be the best option or the No Asset Procedure.

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