Information for people who wish to enter into business while they are bankrupt
If you wish to apply for consent to enter into business, you must file an affidavit under Regulation 10 Insolvency (Personal
Insolvency) Regulations 2007. An affidavit is a written statement confirmed by a lawyer or Justice of the Peace (JP). You may wish to
seek professional advice to complete the affidavit, which must include:
whether the business is a new business
what capital you or anyone else will put into the business
what provisions you have made to meet all taxes and regulatory requirements
what plans or processes you will have in place to meet your health and safety obligations
who your financial supervisor is and what will be the role and powers of that person
any other information the Official Assignee may need.
The Official Assignee needs to make an informed decision, so please include the following information in your affidavit:
Financial matters
how you became bankrupt
whether or not contributions to your current bankruptcy will be available
how an approval will benefit creditors in the bankruptcy
your business plan
details of bank accounts
your twelve-month budget and cashflow projections in some cases two or even three-year projections may be required
Practical matters
your present employment status
a description of your duties and responsibilities in the business
the nature of your proposed business
what plant or equipment you require and how you will pay for this
whether staff are to be employed
where the business will operate from, that is, home or leased premises for lease premises, provide full details of the proposed
any other information that will assist the Official Assignee
From your Financial Supervisor (accountant)
You will also be required to provide:
What happens now
If consent is given, it will be given in writing. You must not enter into business until you receive the Official Assignee’s consent
in writing.
A business plan, in the same manner that you would if you were applying to a bank for finance
A letter from your financial supervisor stating that they consent to manage your business affairs, file Inland Revenue returns,
pay taxes and attend to other administrative matters
I, ________________________________________________________________ (name) of
______________________________________________________ (full postal address)
_____________________________________________________ (contact phone number)
I swear that the information and statements contained in this application are true and correct:
1. I was adjudicated bankrupt on ______________________
2. I seek the Consent of the Official Assignee to enter into business on my own account.
3. My present employment status is:
4. I wish to enter into business for the following reasons:
Business details
5. The proposed business is new / existing business.
6. The nature of the proposed business is / will be:
7. There will be no other staff / staff employed (state number):
8. My duties and responsibilities in the proposed business will be:
9. The plant and equipment required for the business are:
10. I currently have the necessary plant and equipment on hand / the funding for the
equipment will come from:
11. The business will operate from (i.e. home or leases premises. For leased premises,
provide details of the lease):
12. The business will operate a bank account at:
13. The capital that I will put into the business will be:
14. The capital another person will put into the business will be (state name and
15. I have / have not reviewed the material on the WorkSafe website relating to the business.
16. The nature of the health and safety hazards and risks associated with the business are:
17. The plans or processes I have in place / will put in place to meet my health and
safety duties and obligations are:
18. The provisions I will make to meet all taxes and regulatory requirements are:
Financial supervision
19. The financial supervisor (accountant) will be:
20. The financial supervisor’s role and powers will be:
21. My financial supervisor will submit trading statements to the Official Assignee on a
three / six / twelve monthly basis.
22. one / two / three year budget and cash flow projections have been prepared.
Pre-bankruptcy history
23. My pre bankruptcy employment details - role, duties, responsibilities and income:
24. My bankruptcy resulted from a business failure / was not related to a business
25. The causes of my bankruptcy were:
26. I have / have not been bankrupt before.
27. I have / have not been convicted of fraud.
Benefit to creditors
28. Contributions to my current bankruptcy will / will not / may be available.
29. The benefit to my creditors in allowing this application is:
Supporting information
30. I also supply the following information to support this application (if applicable):
Signed ____________________________________________________
Sworn at _____________________on_____________________________________20____
before me __________________________________________________
Name _____________________________________________________
Solicitor of the High Court of New Zealand / Justice of the Peace