"YOU ARE A MENACE."

Auckland Star, Volume LVIII, Issue 225, 23 September 1927, Page 9

"YOU ARE A MENACE."

BANKRUPT WOMAN'S DEALING

LOSSES ON BOARDING-HOUSE.

ASSIGNEE NOT SATISFIED.

"You arc a menace to the community. A hire-purchase agreement gives you the use of furniture, but it does not become yours until you... have paid for it. Whether ,you made your agreements through ignorance or fraud the position is the same. In. airy case, you' are nol fit to be in business," said the- Official Assignee, Mr. G. N. Morris, to-day to Mrs. Helen McCoVmack, recently a boardinghouse keeper at "Alvine," Khyher Pass, at a meeting of her creditors to-day.

The bankrupt's schedule showed that her debts to. unsecured creditors amounted to £368 Ll/4. She said that she was,the wife of Harry contractor, of Hamilton: ■'& leaser ot * Khyber Pass boardinghoiise wae takeji .about two years ago, and she paid jE6SO for the goodwill, furniture and o<;her considerations, including a lease' Vith •two years and 10 months to run. rental.was £10 a week. A sum of £40 or £50 was paid the vendor. A considerable amount of furniture was put in the' house, and other articles were purchased, at a cost of £180. She did, not know how much was owing on those purchases.

Bankrupt added that she had no capital' and had not had a banking account for five years. Her husband paid out the £650 for the Khyber Pass house and also a deposit on-one of the purchases. Her daughter also paid a sum as a deposit. A loan of £200 was raised and paid off except for £91. Twelve months ago the rent was £80 in arrears.. After paying off various debts she'..had no money left, and when the bailiffs took possession she filed. ■

' Under examination by the Official Assignee, bankrupt said that she had no experience in the keeping of books. Every night she followed the* practice of writing down lier expenditures in notebooks. She admitted having lost £1000 in two years. For the first few months the house did not pay because it/was not full. She had it full during the summer months. About a year ago she tried several times to sell, but. failed. She was ; not able to say what she owed at that j time; She had not disclosed her position to her creditors. Other than book debts •he had no assets at the time of her bankruptcy. The book debts amounted tp about £100.

"You should have included those in your schedule," said Mr. Morris.

, The Official Assignee said that ■he would make arrangements to disclaim tire'lease. He advised bankrupt not to apply for her discharge, as it would be [opposed.