37 BANKRUPTCIES

Gisborne Times, Volume LXVII, Issue 10476, 5 January 1928, Page 6

37 BANKRUPTCIES

BAST YEAR’S RECORD IN GISBORNE.

LJABILI TIES- TOTAL- £31,420

Thirty-seven bankruptcies cceurred in Gisborne during the past twelve month;-, an increase of seven on the previous year’s figures, Gut the aggregate liabilities wore proportionately not so heavy. Of last year’s failures, H 6 petitions were on debtor’s applications whilst one was on that or a creditor. The total liabilities of the bankrupts amounted to 631,420 and the assets totalled £15,875. compared with £29.423 worth of debts accounted for by the 39 bankrupts in .1926 Last year the liabilities to secured creditors aggregated £‘30,323 and the value of securities was £43,556.

The figure of £ls Sfo given as representing the assets in the estate's of last year's bankrupts is somewhat misleading. It is pointed cut by the Deputy-Official Assignee that or late the practice has boon growing among bankrupts in their filing statements of thou- financial positions to include every possible equity tvhieh they possessed at the time of thing as an asset. thus bolstering up Lheir position, which is thus presented to the public through publication of the statements in the press. Creditors are thus led to behove there is a good prospect of a substantial dividend, whereas when Lite majority cl tinequities are investigated _ they are found to lie vain less. Taking last wear's figures, showing liabilities totalling £31,423 and assets shown hv bankrupts, £15,875. one would assume that the majority of the bankrupts would pay a dividend ol IDs in the £. But' this is not the case. Fully ’ £IO,OOO of the £15,875 shown as assets represented the assets indicated, nv three bankrupts-' and which, on investigation, rrmec. to be'much below that sum. This is a practice that is not only unsatisfactory to the authorities, but is misleading to the public and it is particularly diificu.t for the De-put \- Ufficial Assignee to take action to check, as intention to mislead must be proved. The occupation of bankrupts during the past year wa-s as follows: Builders and contractors, carriers and farmers, two each; laborers, six; accountant, auctioneer, native settler, barman, commission agent, confectioner, contractor, company manager, chemist, fruiterer, fireman, garage proprietor, gramophone dealer hotel-keeper, interpreter, pastrycook, painter, photographer, plumber, restaurant proprietor, oculist, showman, etaxi driver, tobacconist, and watchmaker,‘one each. The extent of the liabilities for which the various bankrupts filed is interesting. One had liabilities under £SO, three from £•"■'l to- £lt\. twelve from £lO9 to £li'o, six Iron. £250 to £SOO, six from £o(/0 t< £IOOO, four from £IOOO to £2050 four from £2OOO to £SOOO. and on< £SOOO and upwards. ,