A Far North district councillor has just days to stump up more than $800,000 or face bankruptcy.
But Steven McNally told the High Court at Whangarei yesterday he could not afford the sum and that he faced being bankrupted by FM Custodians, Fund Managers Auckland and Auckland Mortgage Trust.
McNally, a former director of McNally Valuation (2000), which went into liquidation in 2011, valued a property in the Bay of Islands before FM Custodians lent around 70 per cent of the valuation price to the new home owners.
FM Custodians owns more than 75 per cent of the debt, while the rest is owned by Auckland Mortgage Trust and Fund Managers Auckland.
The home owners could not keep up with the repayments and the lenders lost money after the house was later sold at a lower price because the housing market was down.