BANKRUPTCY OF CLERK

Press, Volume LXXXIX, Issue 27226, 18 December 1953, Page 12

BANKRUPTCY OF CLERK

NET DEFICIENCY OF £18,515

CREDITORS SEEK PUBLIC EXAMINATION (New Zealand Press Association) WELLINGTON, Dec. 17. A decision that the bankrupt’s affairs be publicly examined was reached by a meeting of 50 creditors and solicitors for creditors, presided over by the Official Assignee at Wellington (Mr M. R Nelson) today. The bankrupt is Hector Alfred Farmer William McDonald, aged 51, a clerk, and his net debts were declared at £18,515 17s Id. A committee of three was set up to investigate the bankrupt’s affairs, and S repare a statement for the informaon of the Crown Prosecutor. McDonald’s gross liabilities were given as £23,413, but secured creditors reduced the amount to the declared net deficiency. He was represented by Mr C. H. Hain. The meeting discussed the disposal of the bankrupt’s house at Karon and a seaside residence at Paremata. It was decided to submit the Karori home for auction, and the Paremata property will be sold, subject to the equity of two mortgagees being decided. The Official Assignee said that the creditors were entitled to know where the money had gone. Mr E. Chatwin, solicitor for a creditor: Perhaps it is only fair at this stage to say that I intend to move for a public examination. The Official Assignee: But I still wish to have a statement by the bankrupt. In answer to questions by Mr Hain, McDonald said that he attributed his bankruptcy to the snowballin’* effect of the nigh interest he had had to pay for personal loans. He thought that he first became financially involved about five years ago, and it was usual for him to pay between 200 and 300 per cent, per annum interest on advances made to him. He gave as an instance the borrowing of £2OO and giving £5O for the use of the sum for two months. He would then have to borrow a larger amount with increased interest or bonus to meet this loan. McDonald told Mr Hain that he did not gamble nor live extravagantly. He had no assets other than those disclosed to the Official Assignee. The meeting was adjourned sine die.