Unemployment is rising Inflation is nudging the top of the Reserve Bank’s target band The housing market is flat The US tariffs continue to yo-yo The OCR didn’t drop at the last announcement Its tough out there, and people know it We take a look at what happened in the insolvency figures during July 2025 when compared with the last few years for personal and corporate insolvency. Winding Up Applications Tipping into the back half of the year winding up applications are almost back in triple digits and expected to continue to track up further. Figures were recently released from an Official Information Act request to the IRD showing more than $1.4 billion in unpaid taxes from the 2025 tax…

Where do you look for public notices? If your answer is the NZ Herald, The Post or another regional paper, you’re not alone but you might miss the bigger picture. We publish public notices every week for new insolvency appointments. It’s not optional, it’s a legal requirement under the Companies Act 1993 and other relevant legislation depending on the type of appointment. These notices serve an important purpose: they inform creditors, shareholders, and other stakeholders about key developments like: New insolvency appointments Opportunities to file claims in insolvency engagements, corporate and personal Meetings of creditors Watershed meetings Creditors taking enforcement action against companies and individuals Notices to end appointments These notices are a critical part of the insolvency process. They…

Suppliers face a real challenge when trying to assess a potential customers’ IRD debt before they set up an account and provide them with credit. IRD debt levels are not publicly available information, so what can you do to protect yourself? Why IRD Debt Is Hard to Detect? IRD debt is considered confidential and is not listed on public registers like the Companies Office unless the IRD has issued a statutory demand and formal recovery actions like liquidation proceedings have commenced. Because of this an IRD debt may not necessarily appear on a traditional credit check. This lack of transparency means suppliers must rely on indirect methods to assess risk. Warning Signs a Company May Have IRD Debt Poor Communication…

Insolvency by the Numbers #55: NZ Insolvency Statistics June 2025 Below we outline the insolvency figures for June 2025 when compared with the last few years across personal and corporate insolvency. Winding Up Applications As we mark the half way point for the year the insolvency figures follow their normal trend of a slight drop before heading upwards towards Christmas, this is in part driven by people pushing to get things done in the 2nd half of the year and a lack of public holidays delaying mattes. While not back into the triple figures seen at the start of the year the June figures were inline with what was expected for winding up applications. Creditors, particularly IRD, continue to apply…

When the IRD Comes Knocking: What Company Directors Need to Know No business owner wants to see a letter from the Inland Revenue Department (IRD) land on their desk especially when the business is already under financial pressure. But whether it’s a late payment notice, an audit notification, or a formal demand, how you respond can have serious implications for your company and you personally as a director. Here’s what to know when the IRD comes knocking, and how early engagement with a licensed insolvency practitioner can help protect your business, assets, and reputation. Why IRD Debt Matters More Than Most IRD isn’t just another creditor. It has stronger enforcement powers than most including the ability to: Garnish funds directly…

KiwiSaver and Bankruptcy: A Recovery Option for Creditors Pre-Bankruptcy. New Zealand's KiwiSaver scheme, introduced in 2007, has become a cornerstone of the country's retirement savings framework. However, when financial difficulties arise and bankruptcy looms, both debtors and creditors face complex questions about how KiwiSaver funds are treated in insolvency proceedings. This article explores the intersection of KiwiSaver and bankruptcy law, with particular focus on recovery options available to creditors before formal bankruptcy proceedings commence. If an individual is adjudicated bankrupt in New Zealand, their assets vest in the Official Assignee (OA) for the benefit of creditors. One of the exceptions to this rule is the individual’s KiwiSaver. Despite being considered an asset under the Insolvency Act, the OA cannot access…

Insolvency by the Numbers #54: NZ Insolvency Statistics May 2025 May 2025 saw another OCR drop of 0.25 basis points during the month, despite calls for a larger drop. The property market remains subdued and a buyers’ market, in addition housing stock availability continues to rise, anecdotally there appear to be a lot of recently completed townhouses sitting there unoccupied and awaiting sale. Business confidence remains low. Below we outline the insolvency figures seen in May 2025 when compared with the last few years across personal and corporate insolvency. Winding Up Applications The bounce back from last month’s public-holiday lows saw May just shy of the triple figures we had predicted. The May winding up figures were above the level…

In today’s volatile economic climate, companies across industries are navigating increasing financial pressure. Rising interest rates, supply chain disruptions, and margin erosion are converging to place directors and business advisors under heightened scrutiny. Now, more than ever, proactive advice from a licensed insolvency practitioner (LIP) can be the difference between a successful turnaround and a forced wind-up. Whether you’re a director, accountant, or legal advisor, understanding when and why to involve an insolvency professional is vital to protecting your client's (or your own) business, assets, and reputation. The Power of Proactive Advice Licensed insolvency practitioners are not just “last resort liquidators.” They are restructuring and risk management specialists trained to assess a business’s position, preserve value, and advise on compliant…

A guide for directors on what really happens in insolvency—and how to protect yourself. In closely held or family-run businesses, it’s common for directors and shareholders to move money in and out of the company whether as loans, drawings, or transactions with related entities. These practices often feel routine, but in an insolvency scenario, they can become the focus of intense scrutiny and even personal liability. Understanding how these transactions are treated when a business fails is essential for any company director. Here’s what you need to know. Director Loans: Not as Simple as They Seem Directors often treat loan accounts as flexible cash flow tools drawing funds when needed, or injecting capital during tough periods. But unless documented properly…

If there was a cliff for the insolvency figures to jump off it would be called “Public Holidays” and they have effects across the board this month, but people taking 10 days in a row off will do that. April felt suspiciously like Christmas where you have a month’s work to do in half the time, so naturally some things get put off to next month. Coupled with the shorter month we also had global factors playing havoc with the economy and adding to the uncertainty for businesses, a number have started to take the wait and see approach to see what washes out rather than taking action to deal with problems they are facing. Winding Up Applications April saw…

The escalating tariff regime between the United States and China continues to cast long shadows across global trade routes—and New Zealand is far from immune. With the U.S. implementing new or increased tariffs on Chinese goods, the indirect consequences are set to impact a range of New Zealand industries, raising the risk of insolvency in already vulnerable sectors. Indirect Shockwaves: How U.S.-China Tariffs Affect NZ New Zealands economy is deeply interconnected with both the U.S. and China. The tariff regime creates cost distortions, re-routes global trade flows, and introduces volatility to commodity markets. These dynamics are especially relevant for New Zealand exporters, importers, and manufacturers. Industries most at risk include: Exporters of Raw Materials & Agricultural Commodities: A slowdown in…

In the life cycle of a company, disputes between shareholders or directors are not uncommon. Tensions may escalate due to differing visions, a breakdown in trust, or major life events—like the death of a key shareholder-director. When parties are no longer aligned and cannot find a viable path forward, liquidation is often seen as a last resort. But it can also be a strategic tool for resolving conflict and unlocking value in a deadlocked business. When Business Relationships Break DownMany small-to-medium enterprises (SMEs) in New Zealand are closely held, often by friends, family members, or long-time business partners. These relationships can deteriorate over time due to: Disagreements on strategy or financial direction Disparities in workload or contribution Retirement plans or…