Debtors may serve periodic detention
By
ROBYN BRISTOW
in Rangiora
Debtors who fail to obey Court orders,from January 1, 1990, could serve up to six months periodic detention for contempt under the District Court Amendment Act, 1989.
The Registrar of the District Court at Rangiora, Mr Pip O’Connell, said yesterday that, under the new act, debtors could not be imprisoned for failing to abide by Civil Court orders as previously.
Debtors under the amendment will be examined by the registrar who will then make an order. If the debtor does not comply with the order, the creditors can apply for contempt proceedings. Failure to appear in court for a hearing will result in a warrant to arrest being issued and served by a bailiff who may seek the assistance of the police if necessary. That person will then appear in court or be bailed at the nearest police station.
If the debtor fails to appear
while on bail the creditor can lodge an information, and a summons for failing to appear would be made. The issue then became a criminal matter, said Mr O’Connell.
Another warrant would be issued and the process continued, he said. ■ He urged debtors to get in touch with their creditors through their lawyers or debt collecting agencies to make arrangements to pay debts before
it began a long, involved procedure through the courts resulting in increased indebtedness as a result of court and other costs.
Even if periodic detention was the sentence given for failing to comply with a Court order, the indebtedness remained and must be met, he said. “It does not replace money owed by a person,” said Mr O’Connell.
The District Court jurisdiction for debt has increased from $12,000 to $50,000.
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Bibliographic details
Press, 5 December 1989, Page 2
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289Debtors may serve periodic detention Press, 5 December 1989, Page 2
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