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Debt Repayment Order

A sustainable insolvency option for bankrupts with a small amount of debt to repay
Let Adept Financial Supervision simplify the process

Need help managing the terms of your Debt Repayment Order?

A Debt Repayment Order is a plan for debt reduction. Previously known as a Summary Instalment Order (SIO), this plan is the most common insolvency option if you owe less than $50,000 in unsecured debt and are able to make some repayments on your debts. It affords you time – up to three years in most circumstances. It also ensures that the people or organisations you owe money to are repaid, and enables you to continue in business.

If you have applied for, or intend to apply for, a Debt Repayment Order you will need to find a Debt Repayment Order Supervisor to work with. Bev Raynor at Adept Financial Supervision is registered with Insolvency & Trustee Services as a Debt Repayment Order Supervisor and can help. Think of Adept Financial Supervision as the bridge between you, the Official Assignee and your creditors. 
Move forward while making sure your Debt Repayment Order is being adhered to with Adept Financial Supervision. Contact us for bankruptcy help today.
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What are the different levels of bankruptcy and how do they relate to financial supervision?

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There are three levels of bankruptcy. Each has a different set of obligations and will result in a different outcome. It is important that you understand all three so that you make a fully informed choice.


1. Full bankruptcy
This option means that all debt is wiped and you are declared bankrupt for three years. In order for you to continue operating your self employed business after a full bankruptcy you are required to have financial supervisionThis means that a third party business like Adept Financial Supervision will step in and manage your debt, your tax and provide accounting services until the end of your bankruptcy period.
2. Debt Repayment Order (SIO)
If you have under 50k of debt and want to pay your creditors back you will apply for a Debt Repayment Order. A debt repayment plan is created with assistance from an SIO Supervisor and then negotiated with the people and organisations you owe money to. Many bankrupts are able to pay creditors back at a reduced amount, and in some situations have up to five years in which to do so. It simply depends on the terms set out in the Order. Financial supervision is not required under law but highly recommended.
3. No Asset Procedure (NAP)
If you owe less than $50,000, have no assets and have no extra money to make repayments on your debt, you will choose the No Asset Procedure. NAP is less restrictive than bankruptcy, but may impact your credit rating and your future employment opportunities. NAP lasts for approximately one year. All your debts are cleared and your creditors do not get paid any money back. NOTE: You can only enter into a NAP once in your lifetime. If you fall into a debt trap again your only options are full bankruptcy or a Debt Repayment Order.

What happens to your assets?

Unlike full bankruptcy, when you are in a Debt Repayment Order you keep control of your assets, income and spending. If you have an asset you are willing to sell to support the Debt Repayment Order that is your choice. Some bankrupts sell their car and use the money to pay off debts, as long as it is not under finance. 
If you are considering this option, contact Bev for bankruptcy help and advice. Bev is a registered tax agent with strong experience in accounting and finance management. She can help you determine if selling your existing assets is the right option and suggest avenues you may not have considered.

Does a Debt Repayment Order sound right for you? If so, here's what will happen

You have filed for a Debt Repayment Order and chosen your Supervisor – what next?
  • You will wait to hear of the outcome from the Official Assignee
  • There is a standard creditor objection period of 10 days before a decision can be reached
  • Your case will be listed on the public register of the NZ Insolvency and Trustee Service  
  • You may have to provide more information to the Official Assignee
  • During the Debt Repayment Order your access to credit will be restricted
  • You will make scheduled payments to creditors
  • Once the terms of your Debt Repayment Order are completed you will be discharged


Once you have entered into a Debt Repayment Order, creditors cannot continue to chase you for payment of any unsecured debts included in the order or add any further penalties or interest to that debt.

Visit the New Zealand Insolvency and Trustee Service for more information. 

Adept Financial Supervision is based on the Kapiti Coast and can recommend bankruptcy advice to small business owners throughout New Zealand who are in the process of bankruptcy and need support and guidance. Wherever you happen to live – Wellington, Auckland, Christchurch – we can help, so send your enquiry today.
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Contact Bev

To discuss preventative financial supervision or receive bankruptcy advice. Our services can be accessed in person, online or over the phone making it easy for bankrupts throughout New Zealand to receive help when it’s needed most. If you live in Christchurch, Auckland or anywhere in between contact Bev today.