A HAPPY TURN

Auckland Star, Volume LV, Issue 114, 15 May 1924, Page 3

A HAPPY TURN

IN BANKRUPTCY PROCEEDINGS

A LEGACY AXD A RESTRICTION*.

There was a novel and distinctly amusing termination to a bankruptcy meeting at the Official Assignee's office this morning, when, after considerable cross-examination on other matters, the bankrupt admitted that he had been left a legacy under his father's will, and this would more than meet the deficiency shown in his business.

The bankrupt, Thomas Oscar Stanley (Mr. Matthews), explained his career in the soft goods retailing line. In conjunction with a partner lie started in business in 1320, each of the two having about £50 cash and borrowing £100 from the Repatriation Department. The partnership was hampered by lack of capital, and want of business experience was also against thorn, as the soft goods business went through a very fluctuating period. The partnership was broken in. April, 1021, and after selling up the stock all debts were paid except about £60 to the Repatriation Office. Bankrupt started out again on his own account, but was badly handicapped by inability to collect book debts.

In reply to the Official Assignee bankrupt admitted that a judgment order was obtained against him about 12 months aco, but lie averred that' he had hopes of improving his position and continued.

'Bankrupt was examined closely by counsel for Messrs. Ross and Glendining. the biggest creditor, and admitted that he married in April last year when he was indebted to this firm to the extent of £260. He did not consider the position hopelessly insolvent, however. He had expected to got a considerable sum under his father's will, probably about £5000.

Counsel: And you did not set it? Rank-nipt: He changed his will on his deatli-bed and I was left only £500.

Counsel: Oh! That is very good. It is not necessary for mc to .isk any more questions. We will arrange a mortgage on that.

There was another amusing turn to the proceedings when bankrupt in response to a query as to whether there was any restriction on the legacy, replied: "Oh, no. she (a woman to whom the bulk of the estate had been left) has got to d:e or s-methin.?."

It was decided to adjourn the meeting pending an investigation of the •legacy by the Official Assisnee. Bankrupt's estate showed liabilities to unsecured creditors of £4.54 14/10, and assets, comprised of stock in trade and book debts, of £14.5, leaving a nominal deficiency of £209 14/10.