No Asset Procedure (NAP) in New Zealand 2026 — Explained Simply

The No Asset Procedure (NAP) is New Zealand’s version of a “fresh start” for people with small unsecured debts and no assets. It’s simpler and less severe than full bankruptcy, designed for people who genuinely have nothing to give creditors.

Quick answer

The NAP is a 12-month debt relief process for NZ residents with unsecured debts between $1,000 and $50,000, no realisable assets, and limited income. After 12 months, eligible debts are written off. It's administered by Insolvency NZ and appears on the public Insolvency Register. Student loans, fines, and child support are excluded.

What Is the No Asset Procedure?

The NAP was introduced under the Insolvency Act 2006 as a streamlined alternative to full adjudication (bankruptcy) for people with smaller debt loads and no meaningful assets. It lasts 12 months, after which qualifying unsecured debts are written off.

It’s designed for situations where:

Full bankruptcy would be disproportionate to the debt size
The person has no ability to repay and no assets for creditors to claim
A fresh financial start is the most practical outcome for everyone

Eligibility Criteria

You must meet all of the following to be eligible:

1. Debt amount

Total unsecured debts must be between $1,000 and $50,000.

This includes: credit cards, personal loans, store cards, utility arrears, outstanding rent, medical debt.

Does not include: mortgage (secured), student loans, court fines, child support.

2. No realisable assets

You must have no assets of value that could be used to repay creditors. This means:

No property (home or investment)
No significant savings
Car worth less than $5,000
Household goods and basic personal items only

If you have assets, creditors can expect them to be used — NAP is not available.

3. Limited income

Your income must not be sufficient to repay the debts within a reasonable period. The Insolvency Service uses judgment here — there’s no fixed income limit, but you must genuinely be unable to repay.

4. No previous NAP or bankruptcy

You cannot have completed a NAP or been discharged from bankruptcy in the previous 7 years.

5. No reckless or fraudulent conduct

Debts incurred through fraud or deliberate recklessness disqualify you. The Insolvency Service assesses this.

What Happens During the 12 Months

Once your NAP is accepted:

Creditor protection

Creditors cannot take legal action to recover NAP-covered debts
No wage garnishment, no court proceedings, no enforcement action
Collection activities must stop

Restrictions on you

Cannot obtain credit above $1,000 without first disclosing your NAP status
Cannot act as a director or promoter of a company
Cannot manage a business in some capacities
Must notify the Insolvency Service if your financial situation improves (e.g., you inherit money)

No payments required

Unlike a Summary Instalment Order, you make no payments to creditors during the NAP. The process acknowledges you have nothing to give.

After the 12 Months

If you’ve complied with all obligations:

Your eligible unsecured debts are written off
You’re legally free of those debts
The NAP is recorded on the Insolvency Register and on your credit report for 4 years from the date of entry

Your NAP can be revoked before the 12 months are up if:

You acquire assets
It’s found you misrepresented your situation
Your income improves substantially
Fraud is discovered

Debts That Are NOT Written Off

These debts survive the NAP regardless:

Excluded debt	Reason
Student loans	Policy decision — NZ student loans are interest-free and have their own repayment mechanism
Court fines and reparation orders	Criminal justice debt
Child support	Ongoing parental obligation
Secured debts	e.g., car loan where car is security — creditor can still repossess the secured asset
Debts incurred by fraud	Fraudulent debts cannot be written off

The Insolvency Register

The NAP is recorded on the public Insolvency Register at insolvency.govt.nz. This is searchable by anyone — landlords, employers, lenders. It records:

Your name
Date of NAP entry
Status (active / completed / revoked)

After 4 years from entry, the record is removed from the register (though credit reports may retain the record for different periods).

How to Apply

Applications are made through Insolvency NZ (insolvency.govt.nz).

Process:

Download and complete the application form from insolvency.govt.nz
List all debts (creditor, amount, type) and all assets
Provide a statement of your income and expenses
Submit to the Insolvency Service
The Insolvency Service reviews and accepts or declines
If accepted, creditors are notified

The application is free. There’s no court hearing required.

Alternatives to the NAP

If you don’t qualify for NAP (debts over $50,000, or you have assets), consider:

Summary Instalment Order (SIO) — structured repayment plan, debts up to $50,000, income required
Creditor proposal — negotiate directly with creditors through the insolvency process
Adjudication (bankruptcy) — for larger debts or when creditors force action

→ Full comparison: Bankruptcy and Insolvency in NZ

Is the NAP Right for You?

The NAP is appropriate when:

Your unsecured debts are genuinely unpayable
You have no assets and limited income
You want a structured, legally protected resolution
Full bankruptcy seems disproportionate

It is not appropriate if:

Your debts are primarily student loans, fines, or secured debt
You could reasonably repay over 2–3 years with better budgeting
You have income or assets that could service the debt

Get independent advice before applying. Call:

MoneyTalks — 0800 345 123 (free)
Citizens Advice Bureau — cab.org.nz
Community Law Centres — communitylaw.org.nz

Next Steps

Check your total unsecured debt and confirm it’s between $1,000 and $50,000
List all your assets honestly and assess whether you have realisable value
Call MoneyTalks to discuss whether NAP is the right path
Visit insolvency.govt.nz to review the application requirements