A BANKRUPT BUILDER.

Auckland Star, Volume LVIII, Issue 49, 28 February 1927, Page 9

A BANKRUPT BUILDER.

OPERATIONS AT TAKAPUNA.

DISCHARGE TO BE FACILITATED,

"The bankrupt is a builder, and there are too many of such cases coming here," said Mr. Morris, Deputy-Official Assignee, this morning. "Prices are being cut, and the weaker men finish here. Unless there is a resolution of sympathy from the creditors I shall oppose the discharge." The bankrupt was A. Harvey, and his schedule showed secured creditors £7454, and unsecured creditors £741 13/10 (excluding a claim for £GOO by the Government Land Board), making a total of liabilities £8195 13/10. Assets were set out at £SOOO in properties and £15 stock-in-trade, leaving a deficiency of £ISO 13/10. Bankrupt was represented by Mr. W. W. Meek, and Mr. J. J. Sullivan watched proceedings on behalf of Mrs. Harvey.

lii his statement, bankrupt said that , lie enlisted with the Fourth Eeinforce- ! ment, and on receiving his discharge in , 191G took up a section of 101 acres at Streamlands at £15 per acre under the Soldiers' Settlement Scheme. Dairying was his principal source of revenue, , and lie was compelled to do a little building, etc., in order to get enough money to spend on improvements. After six years' struggle he applied to the Lands Department for three months' leave, during which he appeared before the board, the members of which were sympathetic, and advised him to leave the farm and follow his trade. He was allowed three month,s in which to sell the farm, but failing to do so, he was compelled to forfeit it to the Crown. Three years after the forfeiture of the farm the Land Board claimed the sum of £000 for arrears of rent, interest, loss of stock, etc., which claim he refused to acknowledge. After working for six months as a foreman carpenter, he started business with a capital of £200, which amount was advanced to him by his wife. He undertook several contracts, which were profitable, and one or

two special jobs, which were also profitable. Prior to the commencement oi the erection of three houses on sections in Creamer's Avenue, Takapuna, he was in a sound position, although hampered for want of ready cash, which made it necessary to arrange temparary finance on the three houses. The amount advanced on each house was totally insufficient, thereby preventing him from paying all the sub-contractors, etc., many of whom issued proceedings. He sold two of the houses on small deposits in order to reduce his outgoings. At this time his total owing to unsecured creditors. was about £700, which he considered was less than the amount of his equities in numerous properties. He then received a further notification from the Government regarding the £600 which they claimed, together with a declaration which he was required to make giving particulars of his assets. Acting on the advice of his solicitors, he called his creditors together. He attributed his position to the present slump in properties, which prevented him from selling his mortgages and houses, and to the action of the Land Board in enforcing its claim for £600. In answer to a question the bankrupt said that on several of the jobs there had been a good dead of pilfering and on one job alone about £30 worth of timber had been lost. While doing the jobs in Creamer's Avenue he lived in a tent in the avenue, and one night the tent was burned down, all his books being destroyed. The money advanced him by his wife he had paid back, but he" had not paid her any sums other than regular maintenance. He had given his wife £4 10/ a week, and his own personal expenses averaged £2. A Creditor: When did you pay your wife back the £200?— Just recently. I added it into the building of a house for her. When was the house built?—lt was started in November and finished about three weeks ago. Mr. Meek said that were it not for the Government's claim of £jSOO the creditors would get 14/ in the £, which was unusual these days, when in most bankruptcies the creditors did not get a shilling.

Several creditors expressed sympathy with the bankrupt, and a resolution, instructing the Official Assignee to fcailitate Harvey's discharge was passed.