AN UNLUCKY EXCHANGE.

Auckland Star, Volume LVI, Issue 30, 5 February 1925, Page 5

AN UNLUCKY EXCHANGE.

HOUSE FOR FARM. > LKADS TO BANKRUPTCY. The history of an exchange—a house for a farm—was the main feature of an investigation before the Official Assigi_._ this morning ol the bankrupt estate of Annio Edna Leathcrharrow, a married. woman, of Auckland. The estate showed a nominal deficiency of £.'t7 ltl/10. Tho liabilities were comprised of unsecured debts £104 0/ and secured £1721 7/10, the value of the security being £1700. a deficiency of £21 7/10, making a total of £12.""» 18/10. The assets were book debts of £..0. In a written statement, lo the Official Assignee, bankrupt attributed her fail. ure to the cnnse<iueni_'es ol an agreement to exchange a house in Ingram Road, Remuera, for a farm of 111' acres at Putaruru. An action was brought against her at the Supreme Court for the specific. performance of this agreement and she resisted it. Judgment went again_t her for the amount of £75 plus co<ts. The immediate cause of her bankruptcy was her inability to pay this sum. Bankrupt had relied ou being able to raise sufficient on the farm property lo finance it, bub was unsuccessful. Bankrupt said that slio was at, present the proprietor of an apartment house, and if she was sufficiently successful slio would make an olTer t.i the creditors. She intended to take over tho farm had she been able to finance it. lle.r husband was a farmer, and advised her to liny the farm. In November she received £100 insurance money as the result of a fire, and it had been used in living expenses. In the course of examination bankrupt said she had offered the farm back to its previous owner, hnt he had not accepted. She had sold the stock on the farm for £20. As a matter of fact they were not on the farm, but in tbe pound, and it. cost £7 to have them released. "This woman seems to have entered into a foolish exchange,"' said the Assignee. "Sly business is to see whether there nre any funds out of which the liability can be met. I can't see as a result of the examination that there are any assets undisclosed." A creditor moved that bankrupt's discharge be facilitated, but this was opposed by the largest creditor, and the matter was adjourned sine die..