Our attorneys in New Zealand offer a wide range of legal services, including assistance in litigation cases. One of the most common litigation cases which can be met in New Zealand is debt collection.
The New Zealand law provides for the rights of both the claimant and the debtor, however, it is always advisable for the parties to request legal assistance when facing such an issue. With a vast experience, our law firm in New Zealand can guide those in recovering outstanding amounts of money.
The claimant and the debtor must know that there are two types of debt collection procedures in New Zealand:
Amicable debt recovery implies reaching an agreement without the presence of a New Zealand court magistrate, while the legal procedure implies a legal action against the indebted.
Below, our New Zealand lawyers explain the amicable and legal procedures of debt recovery.
Amicable debt collection in New Zealand includes the following steps:
This is the best outcome of a debt recovery process in New Zealand, however, if this does not happen, then the legal procedure can commence.
When the process is handled by an agency, the agency is the one that will first send the notice against the debtor. The agency is in no way allowed to mislead the debtor into believing that court proceedings have started when they have in fact not or that he can be responsible for paying the entirety of the court or legal fees. The court decides in this manner.
Debt collection agencies are required to provide information about their collection fees. The debtor can also be charged with these fees, however, under certain conditions and the agency may not claim fees that are not mentioned specifically.
Businesses in New Zealand must observe a set of good practice rules for debt collection, and these are also highlighted by the Commerce Commission. We briefly state these below:
Debt collection cases can require a financial statement analysis which is performed upon request by our New Zealand accountants. Understanding the financial situation of a company is an important step, and it can help the creditor understand the amount of credit it can request during the first stage from the debtor company. Our team can give you more details about the analysis usually performed in these cases.
Once the amicable procedure has concluded without recovering the debt, the claimant has the right to file a petition with a New Zealand court. During the legal debt collection process in New Zealand, the court will:
The party who is submitting a claim to recover a debt can do so in one of the following court, depending on the amount due:
Our team specializing in debt collection in New Zealand can help you bring your case to the right court. If you initially brought your case in front of the Disputes Court and the overall claim amount is less than 30,000$, the our team will provide instructions on how the case can be transferred to the Disputes Tribunal by means of filing a notice of application.
Below, our team presents the general steps for starting a claim with the District Court. Please keep in mind that we can provide assistance each step of the way, should you choose to recover debt through court.
It is important to note that a lender has six years to recover a debt in most cases. The time limit starts as soon as the debt is owed. The time limit is no longer taken into consideration (it stops) if the debtor acknowledges the due amount or if pays part of it. In this case, the new time limit will be calculated starting with the date of the last payment.
For the purpose of debt collection in New Zealand through court, the order needs to be properly enforced. There are several possibilities:
Our team can provide you with more details about these enforcement options for debt collection in New Zealand.
For assistance in debt collection cases, please contact our law firm in New Zealand.