UNIQUE BANKRUPTCY

Evening Star, Issue 21170, 2 August 1932, Page 8

UNIQUE BANKRUPTCY

TWENTY SHILLINGS IN THE POUND CREDITORS WAIVE INTEREST A bankruptcy which possesses features almost without parallel in New Zealand has recently occupied the attention of the Official Assignee at Invercargill (Mr H. Morgan), states the ‘ Southland Times.’ The facts are briefly as follows:—On January 25, 1913, Agnes May Pypor, boarding house proprietress, of Invercargill, was adjudged bankrupt. The proved debts amounted to £771 15s Cd, and assets at the time of the bankruptcy were practically nil, but the bankrupt, who subsequently moved to Dunedin, paid out of her income since sum of £628. This has enabled dividends representing 15s 4d in the £ to be paid to creditors. To complete 20s in the £ an approximate amount of £IBO Is 6d is required, and of this the Assignee has in hand £ll6 7s 7d, leaving a sum of £63 13s lid to pay 20s in the £. On July 19 of the present year a legacy to bankrupt of £I,OOO from her deceased husband’s estate fell due. Under the bankruptcy law this legacy is payable to the Assignee as an asset for distribution in payment in full of creditors’ proved debts and interest thereon. "Under the provisions for distribution the legacy of £I,OOO would be applied as follows: —■ £ s. d. Interest at 6 p.c. on £771 15s 6d for 19* years—approximately 695 7 9 Approx, amount to complete 20s in tlie £ 63 13 11 Assignee’s commission, expenses, etc., approximately 75 U t) Surplus to bankrupt, approximately ••• 166 0 I Pursuant to a requestion by more than one-fourth in value of the creditors who had proved their debts in the estate the Assignee called a meeting of creditors for July 15 to. consider the remission of the whole or part of the interest accrued and payable on all proved debts in the estate. This meeting duly took place and a resolution was unanimously carried by the creditors present “ that such portion of her estate in excess of the amount required to pay necessary charges and commission and all proved debts in full without any interest be given back to the bankrupt.” The law required that this resolution be confirmed at a further special meeting. This was held yesterday afternoon, wheh unanimous - confirmation was given to the resolution. Before the meeting terminated bankrupt’s solicitor expressed on her behalf gratitude to the creditors _ for their generosity in waiving the interest to which she realised they were justly entitled.