Once Were Warriors author Alan Duff is today facing bankruptcy proceedings in the High Court at Napier.
Court documents show proceedings were issued against the Havelock North-based writer by an Auckland financier for money he borrowed two years ago.
At issue is an outstanding loan of $32,000 froma property venture.
The court action is the second the 57-year-old has faced in recent months after he was arrested in September for a traffic fracas with Taupo police.
Duff allegedly failed to remain at a scene after he was stopped for speeding, and then failed to stop for police.
A judge dismissed those charges in June, but police are now appealing the decision. In the latest challenge, Mutual Finance Group, a Pakuranga lender, has taken a series of legal steps in an attempt to recover the $32,000, which has now grown to $36,156.08 due to fees, penalties and interest costs, and that's not the end of Mutual's demands.
Mutual first took action against the author in the District Court at Hastings and succeeded in getting an order for repayment on January 18.
Court documents showed that the author turned to a property investment at the height of the boom and borrowed money to fund a venture in his home town.
On August 29, 2006, Mutual drew up a loan document for Duff so he could buy a property in Havelock North. On September 4 of that year, Mutual loaned him $300,000 at 13.9 per cent interest, with a penalty interest rate of 23.9 per cent.
Duff later sold the property and repaid Mutual $306,769.15, the net sale proceeds. But outstanding principal, interest and costs of $32,615.72 remained and Mutual is claiming Mr Duff still owes it money.
Because it got no satisfaction, Mutual is now seeking to bankrupt Duff through the High Court at Napier.
Mutual's bankruptcy notice says that for Duff to mount a challenge, he must satisfy the High Court that he has a counter-claim, set-off or cross-demand against it.
Duff, who sold his $3 million home in a mortgagee auction in December, was unavailable for comment.
