EXAMINATION OF BANKRUPT

Press, Volume CII, Issue 30092, 28 March 1963, Page 9

EXAMINATION OF BANKRUPT

Builder’s Deficiency Of £2184 A bankrupt was questioned at a creditors’ meeting yesterday about several cheques, all drawn the same day, for the same amount, payable to the same person, but drawn by different persons. John Charles Parker, a builder, of Condell avenue, Papanui (Mr D. I. N. Maclean), told Mr D. Malcolm, agent for the Official Assignee, that he could not explain it. An accountant handled his finances, and he himself signed no cheques. Parker, who was adjudged bankrupt on March 15, was shown in his statement of affairs to have assets of £2857, liabilities of £5041 18s Id, and an apparent deficiency of £2184 18s Id. Parker’s statement said he was a building contractor for a number of years until 1962. He had always been under-capitalised and had relied on a profit from each job to carry him through the next job. Finding that money from jobs was slow coming in, he arranged with his accountant to handle his finances and advance him £l2 a week, later increased to £l4 a week.

Although it was clear he was not making a lot of money, it seemed he was holding his own. In 1962 it appeared that no matter how much money was coming in there did not seem to be. enough to pay all accounts. Because he was dissatisfied, he ended his arrangement

with the accountant and took away most of his books of accounts. He found there were accounts unpaid and he decided to sell his house to meet the debts. But the best offer he had for it was £llOO less than he expected, and he found he owed £2OO more than he thought to the State Advances Corporation. That was the first time he realised that he might not be able to pay all his debts in full. “I cannot give any explanation as to how my bankruptcy arose,’’ said Parker’s statement “So far as I was aware, every job I did, except one, over recent years has showed me a profit" His creditors resolved that his house property should be left to him and his wife, with no further action to be taken by the Official Assignee. The meeting was adjourned sine die.