Former property developer bankrupted

Property developer Martin Hutchin at one of his sites in Huntly. 16 January 2010. Photography by Chris Skelton SUN 25Apr10 - FRAUGHT: Property developer Martin Hutchin, left, at one of his sit

A former property developer who presents a "risk to the community" has been declared bankrupt, which a judge said will "promote the interests of commercial morality".

Martin Hutchin's firm Wealth Buy Property built homes in subdivisions in Invercargill and Huntly and sold them as investment properties.

The firm went under in 2013 owing almost $2 million and liquidators said that "poor financial management" contributed to its failure.

Last month Hutchin and his wife Elizabeth were bankrupted over a separate debt owed to Kiwibank.

The pair owed $241,978 to the state-owned lender and opposed the bankruptcy action brought against them.

Martin Hutchin's lawyer said there was no public interest in his client being declared bankrupt and said it was possible the bank could be repaid in full.

But Justice Simon Moore, in a decision only recently made public, said Hutchin had failed to persuade him to not to make the order.

"While his ability to repay is questionable, his commercial history is such that he presents a risk to the community and his adjudication will promote the interest of commercial morality," Justice Moore said.

The judge also said that the activities and assets of a trustee company directed by Hutchin's lawyer required investigation by the Official Assignee.

A property which Hutchin listed as his address earlier this year was transferred to the trustees on April, the same day when the bankruptcy action was first called before the court, Justice Moore said.