A BANKRUPT BUILDER

Auckland Star, Volume LVIII, Issue 86, 12 April 1927, Page 10

A BANKRUPT BUILDER

MEETS HIS CREDITORS

HOUSES FOR SALE

■" So far ;t~ thii bankrupt is concerned." said Mr. Ct. X. Morris, Official Assignee in Bankruptcy, this morning, nt the conclusion of a meeting of creditors, "the best thing he can do is to stick to his trade."

The bankrupt was a carpenter named William Henry Clark, who was represented bv Mr. Tavlor-

The schedule of the bankrupt showed tin-re was due to unsecured creditors £-VkH 17/9, and to secured creditors £2403 19/2.' The estimated value of the security was given at £3379, leaving a surplus to contra of £970. Other assets were book debts estimated to produce £•10, and some small items, which, with the surplus over securities, made the total value of assets £1100. This showed an apparent surplus of £-547 over liabilities.

Bankrupt stated that he started as a carpenter in 1911, and during the war served for three and a-half years. He resumed building on his own account in 1922. Later he started in partnership with E. B. O'Rorke. with £200 capital. They dissolved partnership two years later- Bankrupt carried on building on his own account, and then went into partnership with J. Bond, and built three houses in Valley Road. Later they dissolved partnership, and he continued building on his own account.

Bankrupt detailed various exchanges of equity in houses, and he attributed his present position to losses on two houses. He stated that he had a wife and six children to maintain.

Undtr examination the bankrupt said he lost nothing on the first house he built. He did not lose any money while in partnership with O'Rorke or with Bond. Up to March last year, when lie again started on his own account with about £30, he was free from liability. He did not tell his creditors his position later on as he hoped to make enough profit out of a house \ t , p av overvthinc he owed. lie had no experience in keeping books.

Mr. Morris: That is where many people make a serious mistake. A man may know how to build a house, and yet not have the business knowledge ' to become a successful builder.

A creditor: What about the car the bankrupt drives now?

Mr. Clark said it was his wife's car. Tlie car was worth £215. and there vr&t £175 due on it. His wife bought the car from household money Mr. Morris said lie feared there was nothing much for the creditors in any of the equities, but lie would see what could be done with them.

It was decided to leave the administration of the estate in the hands of tWfe Official Assignee.