How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Chris The Lawyer Your Own Question
Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22969
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
Type Your New Zealand Law Question Here...
Chris The Lawyer is online now
A new question is answered every 9 seconds

I have a NZ student loan from 12 years ago. I have not made

Customer Question

Hi I have a NZ student loan from 12 years ago. I have not made any repayments. It is now at $120,000. I have lived in Australia for the past 12 years.
I am mentally ill and earn no more than $50,000 a year. I own no assets aside from a $10,000 car that has depreciated in value since I purchased it 5 years ago. I have spoken with IRD and they have agreed to provide me with a two year grace period due to my circumstances. However, the interest will continue to accrue during this time.
I am considering a NZ bankruptcy. How will this affect me in Australia given that I have no assets and minimal savings? The wages I earn are below the threshold for garnishment. Mainly I am concerned with issues surrounding not being able to hold credit cards or a bank account. I require credit cards and a bank account in order to earn my meagre living online.
Submitted: 2 years ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 2 years ago.
The bankruptcy will not affect you in Australia. It only applies to you in New Zealand and to assets here. You can carry on in Australia with your bank card and credit card and these will not be affected. It is the best option therefore as this will wipe the debt.