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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22815
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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My house is on leasehold land, the lease went up to $40k per

Customer Question

My house is on leasehold land, the lease went up to $40k per anumn. I advised land owners i could not afford this. The bank paid the first payment then demanded this back i had advised them the same. They then got the house valued not worth enough to clear my debt, they have discharged the mortgage and had me fill out a financial affidavit, i'm not in a position to pay any of this back. I have not heard anything more this was a couple of months ago. How long would it take to put me in bankruptcy?
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.
They must first obtain a judgment for the debt, then serve a bankruptcy notice. After this has passed 14 days, they can then apply for your bankruptcy. The process, if done efficiently, would take about 4 to 6 months. In my experience, banks do not bother if you don't have any assets, because the cost of making you bankrupt is relatively high, and if you have no assets, is spending money with no return. You can yourself apply for bankruptcy at any time if you want to wipe the debts and start again.
Customer: replied 1 year ago.
Thanks for your response Chris,
Do you think it would be advisable to put myself into bankruptcy or leave things as they are? I don't have any other debts.
Expert:  Chris The Lawyer replied 1 year ago.
It may be worth doing nothing. If they don't bankrupt you, then the debt remains owing, for a period of six years, after which the limitation period is reached and they cannot sue. If you file your own application for bankruptcy, the debts are written off, and you are under restrictions for three years, then released to make a fresh start.

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