Relationships Aotearoa principal strategic advisor Cary Hayward said despite working with ministry officials, it appeared most were already committed to the organisation's closure.
He said Relationships Aotearoa's clients were some of the most vulnerable in the country, and they would feel betrayed.
About 900 clients would now be referred back to the courts.
Social Development Minister Anne Tolley said the service had a responsibility to its most vulnerable clients.
She said the ministry needed to work with Relationships Aotearoa to get the names of its neediest clients so they could be helped.
Mrs Tolley appealed to the counselling service to let a ministry clinical team identify those most in need.
The Government was willing to pay extra to have its team go in to manage the situation, she said.
Ministry of Social Development deputy chief executive Murray Edridge said the ministry may look at taking on some staff in certain areas.
He said Relationships Aotearoa realised very late in the piece that it was in financial difficulty.
The service's clients remained the main focus, he said.
Mr Edridge said if current clients were having trouble contacting Relationships Aotearoa, they could call Lifeline on 0800 543 354.
