IN BANKRUPTCY

Manawatu Standard, Volume LI, Issue 69, 20 February 1931, Page 3

IN BANKRUPTCY

MEETING OF CREDITORS. A meeting of creditors in tho bankrupt estate of Mabel Annie Evans, ladies’ outfitter, of Palmerston North, was held in tho office of tile D.O.A. (Mr Deinpsy) yesterday afternoon when there were present the bankrupt and her solicitor (Mr Cooper), Mr Laurenson (representing Brookbank and Coy. and C. 11. Halford), Mr Christianson (representing Miss Ellis), Mr B. Baigent, Mrs I. M. Baigent, Mr W. J. Crawford and the D.O.A.

Tho financial statement showed that amounts duo to unsecured creditos totalled £6Ol 0s 5d and to secured creditors, £639 11s, The latter were covered by securities to the valuo of £1260, leaving available a surplus of £620 9s. Stock in trado at Bulls and Palmerston North was estimated to produce £236 11s 3d, which, together with the surplus from securities, made the assets up to £857 0s 3d, which left a surplus of £255 19s lOd. The principal unsecured creditors in tho estate were stated to be 11. T. Randal, £25 14s 6d; Brookbanks, Ltd., £24 2s 8d; Foote Bros., £2B 5s 3d; F. M. King, Ltd., £29 2s 6d; Marshall and Baxter, £53 6s 6d; Halford and Coy., £23 13s (all of Auckland); Abbott, Oram and Coy., Ltd., £79 3s 7d; Mackay, Logan and Coy., Ltd., £55 10 9d; Bing, Harris and Coy., Ltd., £29 12s 6d (Wellington), Coombs Estate, Palmerston North, £2O. STATEMENT BY BANKRUPT.

In .her personal statement, bankrupt stated, inter alia :—“ln the year 1915 I left Manakau, where I had resided for some years, and went to live in Bulls, where I bought tho property I now own for £I2OO. i paid a small deposit and instalments of purchase money of not loss than £2O per month which I earned by dressmaking and tailoring. I continued these payments until £SOO was paid olf when' I borrowed £7OO on first mortgage from the present mortgagee, Miss Ellis. This mortgage now stands at £SOO as I was able to pay £2OO qut of the purchase money of my house in Denbigh Street, Eeilding, which I sold 12 month ago. Practically all the profits from my business have gone into this property and in the house in Denbigh Street, Feilding, which was my home for a number of years. I bought the Feilding property in 1919 and sold it some 18 months ago when I received £4OO cash—£2oo of which was paid to the mortgagee of the Bulls property and tho balance in liquidation of trade debts. After being at Bulls for some time I started a small business in Nelson as a dressmaker, having really no capital, but with stock, for which I was allowed credit. I only stayed in Nelson a few months and then removed-to Levin for a further short period* until the early part of 1919, when I started up business in Eeilding with stock of tho value ot approximately £2OO and no debts. The Feilding business prospered and, after 12 month I opened a branch business in Coleman Place, Palmerston North, and for four years worked the two businesses which paid their way, although not showing the profits I had hoped for. The hard work entailed proved too much for my health and I found it necessary to close down in Palmerston North and I kept the Feilding business only which I ran until 18 months ago when I found myself beginning to get into financial difficulties and so sold my home in Denbigh Street. From that time the business went down rapidly and in the latter portion of tho year ], instructed my solicitors to ask iny' creditors to meet. Unfortunately, however,, only .two creditors were presented and so nothing could bo done in the way of making arrangements for tho future. I then decided, under advice, to remove to cheaper premises. In this I was grievously disappointed and found that, instead of any improvement, matters went from bad to worse. From the time I asked my creditors to meet until I filed my petition in bankruptcy, the business barely paid living expenses, although I used every endeavour to push the sale of my stock by opening for a short time in. Marton and travelling round the country from house to house in my car. As some of my creditors would not wait longer, and some distress warrants were in the hands of tho bailiffs for execution, I was satisfied it was hopeless to endeavour to carry on. For several months past I have made every endeavour to pay the trade debts as they became due and havo done my best to sell my property in Bulls, or raise more money on it, but have entirely failed. The Government valuation of my Bulls property is £IBSO, but I could not even obtain an offer of £I2OO, nor was I able to raise a further £250 on . aortgage, which would have enabled me to pay 10s in the £l. The motor car was held under a hire purchase agreement on which I have paid £l5O. I am advised that this is not an asset available for my creditors. I have no means whatever and havo nothing to offer my creditors.”

REPLIES TO QUESTIONS.

In reply to tho D.O.A. bankrupt stated that she had paid £275 for tho car and now owed £123 9s, apart from the cost ot repairs. She had not included the amount owing to Mr Baigcnt (£l5B 3s 4d) or Mrs Baigcnt (£336 6s) and could not explain her oversight. The amount taken in the two shops after bankruptcy had been £5 9s 3d, which had been banked. Had sho been able to realise on her assets sho could have paid her debts. Bankrupt’s solicitor read a letter show' ing that the assets had been declared in December, 1930 as at £2225, which pointed out that they had been heavily discounted. She had not kept any books and the balance showing in the bank book had been paid out. In reply to Mr Laurenson, bankrupt stated that sho had realised when sho could not raise any money on her properties that she could not pay her creditors. That was in November last and sho had not incurred any trade debts since August, so far as she could remember. She could not remember when sho had bought goods from Halford’s or Brookbank’s—it was in tho winter. Sho had bought the car a year ago. She was not in difficulties at the time. In reply to Mr Cooper, bankrupt stated that her business had been a cash ono and she did not give credit. Sho had dealt with Abbot Oram and Coy for years and, although her largest trade creditor, they had written hor not to include tho debt in the list as they were writing 1 In 'reply to a further question, bankrupt explained that Mrs Baigcnt was her sister and the debts wore personal loans. She had not treatpd Mr and Mrs Baigent as trade creditors. Tho latter had worked with her in tho business for nine years. ~ Bankrupt declined to answer a question from Mr Crawford as to what sho had done with tho money sho had received from her husband; it was a pnvato domestic matter. There being no further questions, tho meeting was adjourned sine die.