BANKRUPT SHOWS £311 DEFICIENCY

Press, Volume CIII, Issue 30411, 9 April 1964, Page 18

BANKRUPT SHOWS £311 DEFICIENCY

Neglect and dealing with old cars were given as the causes of bankruptcy when lan Lawrence Johnstone, a barman, met his creditors yesterday. , „. Johnstone, married, aged 24, was adjudged bankrupt on March 25. The Official Assignee (Mr P. D. Clancy) said that Johnstone’s statement of affairs showed his debts to be £439 18s lOd, and his assets £l2B 18s Id, leaving a deficiency of £3ll 0s 9d. In a statement of the causes of his bankruptcy, Johnstone said he got into this financial difficulty through neglect and dealing with old cars. He began a creditors' pool and had been paying £4 a week into it. He had also been paying £5 a week for rent, so he was soon overcome by debts. His weekly wage was £l5, and he was left with very little to live on. He tried to struggle on, but was only getting deeper into debt, so the only alternative was to file in bankruptcy. Mr Clancy said that since Johnstone filed in bankruptcy his employer had paid £2O into his office so that increased the assets by that amount Johnstone, replying to Mr

Clancy, said he was paying £5 a week rent for a house. He had been in Christchurch since January. Before that he was at Kirwee and Reef ton. He was a railways fireman when he was at Reefton. Most of his debts were contracted there. He had to give up hit work on the railways because of his health. He had bought a television set on hire pur chase, but found he could no) afford it, so he telephoned the firm to take it back. That had been done. More than £BO wafc paid into the creditors' pool. He did not know that £2B 10s 4d had been paid to the Oft. cial Assignee. He did not now owo a car but he had owned five in tbte last three years or so. The last one was repossessed. He filed in bankruptcy because he could not see any way of getting clear of debt. The most he could pay to reduce his debts was 10s a week, said Johnstone. Mr Clancy closed the me«ting.