ELUSIVE DEBTOR

Dominion, Volume 24, Issue 292, 5 September 1931, Page 8

ELUSIVE DEBTOR

Way of the Creditor is Hard To-day PROCESSES OF LAW “If one-half, the energy used to induce people to purchase goods on credit were used to induce people to pay cash there would be fewer bad debts to-day,” asserted Mr, Julius Hogben, barrister, in addressing the Auckland Creditmen's Club on the subject of "The Elusive Debtor.” Mr. Hogben enumerated the various processes of law for the collection of debts and brightened an instructive address with frequent humorous quips.

“There is no process of law by which you can get money out of a debtor today,” said Mr. Hogben. He attributed the present situation not to the fact that there were more unscrupulous people incurring debts rashly but to the fact that there were more avaricous people willing to give credit foolishly. • Enumerating the safeguards a business man might make on the sale of goods, Mr. Hogben incidentally referred to the undertaking frequently given by one man that he would pay for the goods bought by another in the event of the latter not meeting his liability. “It is as well to remember that such a guarantee Is worthless—at least, it is not legally enforceable—unless it is in writing," said the speaker. “What are the remedies for non-pay-ment after the goods have been sold?" asked Mr. Hogben. “The best remedy is one which few creditors will take because they have hot the courage. That is prompt action. If a man's first account has not been paid by the date ar- , ranged it is better to sue him for pay- ’ ment then and ’there. A man whose first account is bad will probably have a much worse account in six months’ time.”

> The first step in endeavouring to secure payment was to obtain judgment against the debtor. Mr. Hogben said a course not practised as frequently as it might be was to secure the attendance of the debtor for an examination an oath as to his assets. Having obtained judgment, a creditor might proceed against the debtor’s assets 2 —his land, chattels and book debts—or against the debtor personally. Mr. Hogben detailed the pro cedure'when acting under a distress warrant. “Generally the only one caused any distress is the creditor when he finds there are no goods to seize," he remarked. “The first £5O of a debtor’s goods are exempt, and it is surprising how many things are worth less than that amount. The creditor next finds that everything over £5O is also exempt because of the existence of a hire-purchase agreement. Then, of course, when the creditor has obtained judgment against a husband, it. is always the wife who owns the assets.”