Bankruptcy Of Former Land Agent

Press, Volume CI, Issue 29871, 11 July 1962, Page 8

Bankruptcy Of Former Land Agent

The deficiency shown in the statement of affairs of Patrick Thomas Sheehan, a factory employee, was £lB9 16s sd, but it was in fact £368 16s lOd, said Mr D. Malcolm, agent for (he Official Assignee (Mr O. T. Grattan), at a meeting of Sheehan's creditors yesterday.

Sheehan was adjudged bankrupt on June 27. There was not a quorum, and the meeting was adjourned sine die. Mr Malcolm said that Sheehan’s statement of affairs showed the amount owing to unsecured creditors as £240 16s 5d and his assets as £5l 10s, leaving a deficiency of £lB9 16s sd. Later in the meeting Mr Malcolm said that Sheehan had not taken into account an amount of £l2B Os 5d claimed by the Inland Revenue* Department The ' amount shown by Sheehan as assets was the value of his furniture, which he was allowed to retain.

"So his deficiency in fact is £368 16s lOd and his assets nil.” said Mr Malcolm.

In a statement.of the reasons for his bankruptcy Sheehan said he began business in Kaiapoi as a land agent in 1956. Business was not particularly good, but he was able to make a living He was ill from time to time. “In early 1960 we bought

a new house in Charles street. Kaiapoi, for £3350 of which £2850 was the contract price for the house and £5OO for the section. We put no cash a<t all into the house it being financed by obtaining a State Advances Corporation loan for, I think, £2530 and capitalising the family benefit for the balance of the money, I think, £1000,” said the statement.

Previously he and his wife and family had been living in a house on the North road which had been destroyed by fire. They boughit the new house as it was essential to have adequate accommodation.

Another man began business as a land agent in Kaiapoi and another land agent opened a branch office. With this increased competition he found it difficult to make a living He began to accumulate debits which he was unable to pay, said Sheehan in his statement. He fell behind with the payments to the State Advances Corporation. Proceedings for possession were issued in November. 1961, and he gave up possession in December. He was now employed in Christchurch at a gross wage of £l4 a week. He was unable to make any offer to his creditors.

“I attribute my bankruptcy partly through the failure of my land agency business because of competition which I had not had to contend with before, to my over-commit-ting myself in purchasing the new house and capitalising the family benefit, and to my own ill health at a critical stage subsequent to moving into the new house," said the statement.