IN BANKRUPTCY.

Auckland Star, Volume XXXII, Issue 206, 11 September 1901, Page 6

IN BANKRUPTCY.

Charles Albert Bloomfield, bankrupt, in his sworn statement, states that he was in business two years ago as a fancy goods dealer in Auckland and Whangarei. He was burnt out at the latter place on January 8, 1900. He was not insured, and his loss was £300, leaving him about £90 in debt. He came to Auckland the day following the. fire, penniless, and his eyesight failing him, was unfitted for work, and dependent on a friend for maintenance. On July 3, 1901, he agreed to purchase three allotments in Haslett-street, Eden Terrace, for £70, and paid a deposit of £10. He then borrowed £150 at 5 per cent., and £100 at 6 per cent., and with this proceeded to build a 6-roomed house on one of the sections, giving a first and second mortgage over the section and house to cover £250 loans. The house was built with the idea of selling it, and,he refused an offer for it of £300, wanting £325. He then went to a timber firm, to whom he owed £89 for timber supplied to the house, and offered to transfer the mortgages to them, and to include the other two allotments if they would complete the building of a second house. This was agreed to, and the work was carried on for about a week. The necessary deed was in the meantime prepared, and when placed before him he refused to sign it, because its conditions were contrary to the verbal understanding. This was on or about August 16, and on the following day the firm issued a writ against him for £89 owing to them. This was followed shortly afterwards by writs from three other creditors, and on the 9th inst. he was adjudicated a bankrupt on the petition of the Waitemata Sawmill Company, to whom he owed £29 odd. He owes £200 7/2 to eight creditors in connection with the building on the two sections, and to five others about £86 in connection with the Whangarei buildings; total, £286 7/2. Included in this one creditor, £15 12/1, has a lien on allotment No. 4, on which a second cottage is partially built; another creditor for £20 19/9 has a lien on allotment No. 5, on which the finished cottage is built. In addition to the liens there is a mortgage on allotment 5 of £ 150, and a second mortgage of £100; on neither of these has any interest as yet been paid. The second mortgagee advanced various sums of money to pay for the labour during the building of the cottage on allotment No. 5, with the understanding that a mortgage should be executed on completion of the building. She lent him altogether £100, and the mortgage deed was given. Mrs. Brown handed him the money through Mr. Bloomfield, solicitor. He had no assets exr cept whatever interest there might be in the three allotments and the buildings.