I sold my furniture to a friend and offered her a deal whereby she would pay weekly instalments. She paid very well for the first 3 months. She was looking after a child of the court at the time and the child of the court burnt down the house furniture and all. What do I do there is about $3900 owing I subsequently found out that she was not insured as she assured me.

She still has to pay you. Take her to small claims court and get the balance of your money. It wasn't your fault the furniture burnt up, it was hers.