There is more news today about the government's drive to pursue student loan debtors. It will use private detectives and debt collectors to pursue 10,000 student loan debtors in Australia. 

In an ideal world everyone would repay their student loan debt, however, sometimes people find that they just don't have the money to repay the debt and/or it has spiraled out of control, once penalties and interest are added, to such an extent that even someone on a good income has no hope of getting the debt under control. In these situations it is better for everyone that an alternative is sought - as soon as possible. We can help with negotiations, or with evaluating bankruptcy or other options, so that the best solution is found for you so that.you can get on with your life.

Given that the government reports that it receives $12 for every $1 spent on pursuing student loan debts don't expect its efforts to stop any time soon.

The IRD is getting tough with overseas based student loan borrowers who don’t keep up with their obligations. In the case of student loan borrowers living in Australia who are not meeting their obligations, private debt recovery agencies will be used to aggressively pursue the debt. Anyone not meeting their obligation will be at risk of being arrested when they enter or leave New Zealand.

It is common for people with New Zealand student loan debts, and who are living overseas, to overlook their obligations. The important thing to remember is that student loan debts don’t go away. If you don’t pay, the amount owed will increase dramatically and there will be consequences. If you have issues with your debt it is essential that you deal with it. If you can’t pay and you are unable to negotiate an acceptable arrangement you may wish to consider bankruptcy. Bankruptcy is a serious step with serious consequences but it may be the better option than doing nothing – in some circumstances.

If you need assistance with negotiating a debt repayment proposal, or advice on the pros and cons of bankruptcy, please contact us.

We help many people with overdue tax debts and unfiled tax returns.

Some of the people we help haven’t filed tax returns for 10 years; others haven’t understood that the situation is serious until they are served with IRD bankruptcy proceedings. 

One question is: when is it too late to seek help to negotiate a settlement of your tax debts? If you have already been bankrupted or your company has been liquidated there are some circumstances under which you can undo this, however, this would be uncommon. For most people this stage would be too late.

If you have been served with debt recovery proceedings, or even a liquidation or bankruptcy application, we may be able to help but you need to contact us without delay. Obviously, the earlier you contact us the better. We help many people with tax and student loan debts and the main thing to remember is that it doesn’t go away, so the sooner you seek help to negotiate a write off or repayment arrangement, the better.

We regularly receive inquiries from people with tax or student loan debts that they cannot pay. Often the people involved have tried talking to the IRD and been given the brush off by front line staff. Sometimes people in this situation need to consider bankruptcy. Before you consider bankruptcy, and before you give up because it seems like you’re getting nowhere with the debt or the IRD, please talk to us. We can often help to negotiate a debt write off, or reduction, or a repayment arrangement, even if the situation seems hopeless. Even if bankruptcy is a realistic alternative for you, it’s worth trying to see if it can be avoided – if we can’t negotiate a good resolution for you (usually we can help), at least you will know that you have tried everything.

In terms of cost, we will discuss what is affordable for you and then tailor a solution that fits your budget. Common scenarios involve a client agreeing that we will carry out work to the value of $250, or $500. In many cases that is the entire cost, however, if it is not, we will not charge you any more unless good progress has been made and if you are happy to take things further.