Ward's increasing occupation with government affairs led to neglect of his own business interests, however, and his personal finances began to deteriorate. In 1896, a judge declared Ward "hopelessly insolvent". This placed Ward, as Treasurer, in a politically difficult situation, and he was forced to resign his portfolios on 16 June. In 1897, he was forced to file for bankruptcy, which legally obligated him to resign his seat in Parliament. A loophole meant that there was nothing to stop him contesting it again, however. In the resulting by-election he was elected with an increased majority. Ward gained considerable popularity as a result of his financial troubles – he was widely seen as a great benefactor of the Southland region, and public perceptions were that he was being persecuted by his enemies over an honest mistake.