Business

In today’s challenging economic climate, family trusts remain a valuable tool for protecting assets and managing risk. While tax benefits are now limited, their key advantages include separating ownership from personal liabilities, safeguarding assets from creditors, and supporting relationship and intergenerational planning. However, trusts must be properly structured and actively managed to remain effective, particularly under increasing legal scrutiny.

Unpaid debts and commercial disputes can quickly disrupt cash flow and business relationships. Whether you're seeking payment or responding to a claim, understanding your legal position early can help you resolve the issue efficiently, minimise costs and protect your commercial interests.

This article explains the main debt recovery options available in New Zealand. It outlines what to do before taking legal action, when to use the Disputes Tribunal, District Court, High Court, or a statutory demand, and what happens if a debtor does not pay. It also explains key time limits, enforcement options, and practical factors to consider when deciding how to recover a debt.