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Personal insolvency law in New Zealand has had some recent amendments that have been successful in reducing the number of bankruptcies. With the rise in consumer bankruptcies and insolvencies, both in New Zealand and internationally many historic insolvency laws and practices are outdated.  Balancing the obligations of debtors with the relief of a proactive insolvency regime while satisfying stakeholders is difficult. If relief is too easily accessed there is a risk of abuse of the system. If relief is too difficult to obtain there will be unnecessary suffering and a potential loss of economic motivation for the insolvent.  A new model of personal administration is argued as the best mechanism for maximising stakeholder value. Such a system if entered through a restrictive gateway would cease any concern of abuse.

Maximising stakeholder value in personal insolvency (a New Zealand perspective)