Scheme which wipes tens of thousands in debt under spotlight

By on November 6, 2017
Scheme which wipes tens of thousands in debt under spotlight

A ''fresh start'' government scheme which allows people to write off up to $47,000 in debt has come under scrutiny by budget experts, who say some participants had gone on and ''racked up the same amount of debt over again''.

The No Asset Procedure limit, which was an alternative to bankruptcy "is crazy", Family Focus Rotorua Financial Capability Services team leader Michelle Nahu said.

Figures from the Ministry of Business Innovation and Employment show the option was popular with debt-laden Rotorua people and the number of those on it had jumped from 16 in 2016 to 28 so far this year.

A further seven applications were declined compared to five in 2016.

Read the full article by Carmen Hall > Rotorua Daily Post - nzherald.co.nz



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