Described as a habitual debtor who disputes apparently valid claims then commonly pays at the last minute when there is no other option open to him, Wellington-based Harry Memelink lived to fight another day when the Court of Appeal declined to bankrupt him on unpaid body corporate levies.
The court was told of Mr Memelink’s commercial behaviour evidenced by a string of debt collection actions brought against him: the fact of the debt and/or the amount due would be disputed; when found liable he would delay enforcement by making last minute promises to pay, often failing to fully honour these undertakings. Attempts to bankrupt Mr Memelink for non-payment would see a continuation of the cycle: bankruptcy proceedings would be adjourned on promises to pay.
Debts before the Court of Appeal concerned unpaid body corporate levies claimed by two separate bodies corporate: one for $124,700; the other $97,600. Mr Memelink disputes the amount due. He has made some part payments. Evidence was given of Mr Memelink failing to pay ongoing body corporate levies as ordered by a bankruptcy judge, delaying the filing of claimed legal defences to the disputed debts and further failing to fully disclose his net worth.
Bankruptcy proceedings are designed to deal with insolvency, not debt collection. The Court of Appeal said Mr Memelink is someone who is unwilling, rather than unable to pay his debts. It declined to bankrupt Mr Memelink on the claimed body corporate debts.
Mr Memelink was bankrupted in August 2018 on debts totalling $121,900 owed Lower Hutt law firm Collins & May Law for unpaid court costs. His bankruptcy is on hold. Mr Memelink has applied to have this bankruptcy annulled.
Body Corporate 68792 v. Memelink – Court of Appeal (19.11.18)
19.004