I have spoken to a handful of people who are bankrupt.
While it affects them all individually there were some common threads and that is that they did not know what to expect.
Even with having defaults listed on my credit report without any formal insolvency procedure, I have been refused a bank account.
Another bank said they would take away some banking facilities like internet banking if I become bankrupt, that's because its their policy.
I call that discrimination.
Discrimination as to financial status.
Funny how it is not illegal to discriminate against people because of financial status.
I've also moved away from another bank I was using because I will be discriminated against in the future. That fact, no lawyer or accountant was able to advise me of.
The "selling point" offered to me is similar to what you and others have said. A fresh start, easier life, no more harrassment. Well, that price comes at a huge cost.
Nobody talks about the negative life long consequences that one could endure.
If I filed, I can tell you that not one person will come to me and say congratulations Ford you did the right thing.
Once items fall off my credit score after 5 years the points lost are never retained entirely.
That will always be a red flag of past wrongs. The unregulated credit scoring system sees to that.
There are a lot of areas you can't work in, ever, if you have a formal insolvency procedure against you.
On some employment applications you have to declare if you have ever been bankrupt.
There is no clean slate to put right past wrongs.
Sure, you can live in other ways but the direction and quality of your life changes dramatically and permanently.
The system treats people in financial hardship like criminals.
Even the IRD can clean out your entire bank account without notice.
In 2012 I attempted to put right my wrongs. I went to them to discuss my options.
Within days, my entire accounts were emptied and I had to go to WINZ for rent.
The only way to put right debt is to pay it back in cash and close the account, and don't live the same way again.