Applying for a Hardship Application in New Zealand to help with debt
If you have a debt with a creditor and you foresee having problems keeping up with payments on the outstanding debt, you can apply to change your credit contract with a Hardship Application under the The Credit Contracts and Consumer Finance Act 2003 on the grounds of a "unforeseen hardship".
Part 2, Subparts 5 and 6 of the Credit Contracts and Consumer Finance Act 2003 states that debtors have the right to request a variation of a credit contract if unforeseen circumstances cause hardship such as illness, injury, loss of employment or the end of a relationship. The debtor can ask to extend the contract by reducing the amount of each payment or postponing payments, without incurring penalties. However, a debtor cannot seek a hardship variation if they are in default on the credit contract. A debtor can appeal to the Courts if a lender refuses their request.
If you see yourself in the near future unable to meet your monthly payments to banks or financial institutions because of unforeseen circumstances, you may want to contact your lenders and creditors and tell them you need to apply for a Hardship Application. Don't wait until your payments are in default.
For further information regarding the hardship Application in New Zealand, please refer to the Ministry Of Consumers Affairs website at ( http://www.consumeraffairs.govt.nz/businessinfo/cccfa/cccfa2003/bus-note-creditors/cccfa-overview.html ).