New Zealand Legislation: Acts

24 Possession under execution process

• (1) A debtor commits an act of bankruptcy if—

  • (a) an execution process has been issued against the debtor or property of the debtor; and

  • (b) property of the debtor has been taken into possession under the execution process; and

  • (c) the judgment or order for which the execution process has been issued is not satisfied within 5 working days after possession has been taken.

  (2) In this section, execution process means—

  • (a) a writ of sale; or

  • (b) a writ of possession; or

  • (c) a writ of arrest; or

  • (d) a writ of sequestration.

  (3) The period of 5 working days in subsection (1)(c) is qualified if an interpleader application has been made in respect of the debtor's property that has been taken into possession. In that case the period of 5 working days does not include the days that elapse between—

  • (a) the date when the application is made; and

  • (b) the date when the application is finally determined, withdrawn, abandoned, or otherwise resolved.

  Compare: 1967 No 54 s 19(1)(g)