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Insolvency Amendment Bill (Consistent) [2009] NZBORARp 10 (24 February 2009)

Last Updated: 28 April 2020

24 February 2009

ATTORNEY-GENERAL

LEGAL ADVICE

CONSISTENCY WITH THE NEW ZEALAND BILL OF RIGHTS ACT 1990: INSOLVENCY AMENDMENT BILL

1. We have considered whether the Insolvency Amendment Bill (PCO 13570/4.1) (the “Bill”) is consistent with the New Zealand Bill of Rights Act 1990 (“Bill of Rights Act”). We understand the Bill is likely to be considered by the Cabinet Legislation Committee on Thursday, 5 March 2009.

2. The Bill amends the Insolvency Act 2006 (the “Act”) to address a number of issues that have arisen since its enactment. The Bill aims to preserve the integrity of the insolvency provisions by preventing the discharge of fraudulent debts during a “no asset procedure” and restoring the Official Assignee’s ability to recover gifts made by a person prior to bankruptcy.

3. The Bill changes the public register provisions of the Act so that the details of individuals discharged from a “no asset procedure” remain on the public register for four years after discharge. The details of individuals who have had multiple insolvency events will permanently remain on the public register. The purpose of these changes is to better enable creditors to make informed lending decisions.

4. The Bill also provides for the extension of the “no asset procedure” by up to 25 working days, where the Assignee is satisfied that the period should be extended in order to properly consider whether the debtor’s participation in the “no asset procedure” should be terminated.

5. We have concluded that the Bill appears to be consistent with the rights and freedoms affirmed in the Bill of Rights Act.

Jeff Orr

Chief Legal Counsel

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Helen Wyn General Manager Public Law

In addition to the general disclaimer for all documents on this website, please note the following: This advice was prepared to assist the Attorney-General to determine whether a report should be made to Parliament under s 7 of the New Zealand Bill of Rights Act 1990 in relation to the Insolvency Amendment Bill. It should not be used or acted upon for any other purpose. The advice does no more than assess whether the Bill complies with the minimum guarantees contained in the New Zealand Bill of Rights Act. The release of this advice should not be taken to indicate that the Attorney-General agrees with all aspects of it, nor does its release constitute a general waiver of legal professional privilege in respect of this or any other matter.