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NAP

Insolvency changes give creditors more clout

Personal insolvencies have jumped in the first full year after a simplified alternative to bankruptcy was introduced, but new restrictions may not provide much more of a barrier to people taking up the option.

"No asset procedures" or NAPs provide a one-off chance for people with no assets to wipe off up to $40,000 in debt and emerge a year later with a clean slate to borrow again.

Further restrictions on NAPs were proposed this week in a bill introduced to Parliament by Commerce Minister Simon Power.