No Asset Procedure
(NAP)
If you have no assets and no surplus income, and your debts are between $1,000 and $50,000, then a no asset procedure (NAP) might be the debt solution for you, but only after you’ve run out of other options.
At Debtfix, we’re happy to talk you through the options available, or alternatively we can refer you to a local budget adviser or financial mentor for them to help you through the process, which can be a bit daunting, with a detailed form to complete for the Official Assignee.
How does a No Asset Procedure work?
An NAP is a way to clear your debts if you are not able to pay them off. It doesn’t have as many restrictions as bankruptcy, but there will be an impact on your credit rating and possibly on your employment prospects.
The Official Assignee is a government official that oversees the management of NAPs and will ultimately decide if you are eligible or not.
A NAP lasts for one year, and when you enter the NAP your unsecured debts are cleared in total, and these creditors (the people or organisations you owe money to) have to write off the money you owe them.
You will need to continue making payments to the secured debts then you don’t lose those items. Be aware that you can only enter into a NAP procedure once only.
Who can benefit from a No Asset Procedure?
To enter a NAP you must owe between $1,000 and $50,000 in total. This includes secured debts like a car you have on hire purchase, but it doesn’t include student loans, court fines or reparations.
You must have no way to pay any of your debt, and nothing that you can sell to help make payments, including money in a bank or other fund.
You can't enter a NAP if:
the Official Assignee doesn't believe you are eligible;
you have hidden assets - like for example you transferred assets from your name to someone else;
a creditor intending to make you bankrupt would get a better result if you were to be made bankrupt;
if you have already been bankrupt or be in a NAP before.
Under certain circumstances, the Court may reverse or cancel a NAP for a period of two years from when a NAP has been completed, particularly where relevant information was not made known to the Official Assignee at the time of, or during the period of the NAP.
