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Debt Collectors - Outstanding NZ Debt

Discussion in 'Debt and Bankruptcy Law Forum' started by Raewyn Waerea, 25 April 2015.

  1. Raewyn Waerea

    Raewyn Waerea Member

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    Hello, If you have an outstanding debt in New Zealand in the hands of debt collectors and they
    place in the hand of the court can you be held accountable when returning to New Zealand for a holiday?

    Are the courts advised of people landing in New Zealand?
     
  2. Tracy B

    Tracy B Well-Known Member

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    Hi Raewyn,

    I suspect you won't have a problem entering NZ. A debt order is not a criminal conviction so I see no reason why this would affect you entering or leaving a country. The court will not supervise the enforcement of an order. Unless you have an outstanding warrant against you in NZ the courts will not be advised of you entering the country.

    The debt collector has likely received an enforcement order against you. This means that they can take steps to lodge charges over any property you have in NZ, possess property that belongs to you in NZ, or if they then get it recognised in Australia, do the same over your property in Australia. An enforcement order for debt will concern your property not your liberty.
     
  3. Raewyn Waerea

    Raewyn Waerea Member

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    Hello TracyB,
    I have debt in hands of debt collection agency in NZ. They are threatening to file with the court in New Zealand a warrant
    for my arrest or to bankrupt me. What happens under these circumstances if i go back to New Zealand for a holiday?
    I have contacted them to make repayment options but am not able to pay the amount they have stipulated. I cant
    really afford to pay anything at all as am living from week to week and struggling to make ends meet. I have family in
    NZ and am being shouted a trip home next year by family. I dont want to go if they are going to arrest me when i arrive.
    I look forward to your reply.

    Kind regards,

    Raewyn
     
  4. Tracy B

    Tracy B Well-Known Member

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    Hi Raewyn,

    NZ law is different from Australian law. Your debt is in NZ, as are the creditors, presumably, so you should really be contacting lawyers familiar with NZ law. However, assuming their law is similar to Australia's, one cannot be jailed for a civil debt. However, if they initiate proceedings against you for debt recovery in court, then the court will issue a claim and you will be required to attend court to answer to this claim. The court may issue an arrest to ensure that you are present in court to answer this claim. However, you will not be arrested after this, just to guarantee presence in court.

    Try contacting the Banking Ombudsman in NZ and see if they are able to help you, or refer you in the appropriate direction.
     

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