Official Assignee’s Agent Criticises Bankrupt

Press, Volume C, Issue 29624, 21 September 1961, Page 18

Official Assignee’s Agent Criticises Bankrupt

If everyone ran his business as Carey had. it would be a wonder if half Christchurch did not go bankrupt, said Mr D. Malcolm, agent for the Official Assignee, when conducting a meeting yesterday of creditors of Joseph Michael Carey, aged 50, formerly a draper. Carey had debts of £1249 4s 2d and assets of £525, leaving a deficiency of £724 4s ■ 2d. He was adjudged bankrupt on September 8. In his statement Carey said he noticed an empty shop in Colombo street in January, 1959. He leased it and started business as a draper. At first business went well, but in the winter of 1960 it declined. In September, 1960, he was taken to hospital, where he stayed for a month. After another two weeks he returned to the shop. Because of this absence he had not got the expected pre-Christmas trade. His health was poor and he was unable to employ someone to look after the shop when he was ill. As his shop was some’imes closed he lost goodwill. Tire shop had been for sale for the last 12 months but he was unable to sell it. Carey said he had six children, four of whom he supported. At present he earned £l2 a week as a tally clerk, all of which was needed to support his family. He kept only a bank book and card system, and ,he

- threw the cards away after 1 a few months. He kept no • profit and loss account and was unable to employ an act countant to draw up a bal- !, ance-sheet and file a return ? of income. f His only stocktaking had i been after he had been in the shop nine months, and 5 the record of that had been i, lost. He did not know what 4 profit he was making but i thought he was solvent at March 31. 1960. 1 Carey admitted visiting a i hotel three to four times a , week after work and also i said be bet occasionally on t racehorses and played cards, t The gambling had not con- - tributed to his bankruptcy. I, Because he was ill and I, unable to ride a bicycle, he i. bought a car for £lOO, trade ing in his other ear for £95. This car had been registered e in his wife’s name. i “We are getting far too s many persons filing in banks ruptcy who keep no books a and have no idea of keeping » them.” said Mr Malcolm, s “There should be action t taken against them, if not 1 this one, then the next. 2 “Unfortunately the banke rupt is a sick man or it would be a different mat- - ter,” he said. No decisions were made by i the creditors, and Mr Malcolm adjourned the meeting a sine die, saying he did not intend to close the matter, c which was “unsatisfactory in e every respect”