RECOVERY OF DEBTS.

New Zealand Herald, Volume LXVIII, Issue 20968, 3 September 1931, Page 11

RECOVERY OF DEBTS.

PROCESSES OF LAW.

STEPS CREDITOR MAY TAKE

ADVANTAGE OF CASH SALES

"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. Hogben in addressing the Auckland Creditmen's Club yesterday 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.

"As you all know," said Mr. Hogben at the outset, "there is no process of law by which you can get money out of a debtor to-day." He attributed the present situation, not to the fact that there were more nnscrupulous people incurring debts rashly, but to the fact that there were more avaricious 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. "If it is necessary to ask for security for the account you are about to own, it is generally not worth owning. "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 not the courage. That is prompt action. If a man's first account has not been paid by the date arranged, it is better to sue him for payment 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 se-' cure payment was to obtain judgment •gainst the debtor. Mr. Hogben said a course not practised &s frequently as it might be was to secure the attendance of the debtor for an examination ori oath as to his assets. Having obtained judgment, a creditor might proceed against the debtor's assets —his land, chattels and book debts—or against the debtor personally. Mr. Hogben detailed the procedure 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 £SO 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 £SO is also exempt because of the existence of a hire-pur-chase agreement. Then, of course, when the creditor has obtained judgment against a husband, it is always the wife who owns the assets."