Inexperience Causes Russell Bankruptcy

Northern Advocate, 28 July 1939, Page 2

Inexperience Causes Russell Bankruptcy

Sympathy with 1 a bankrupt confectioner, Elsie May Lindauer, a married weman. of Russell, was shown by creditors at a meeting before the acting-official assignee. Mr T. P. Pain, in the Whimgarci Courthouse yesterday afternoon, a resolution not to oppose her application for discharge beau, passed. Bankrupts statement. showed unsecured creditors £405, secured creditors £55. and estimated securities £65, leaving an estimated surplus of £3. which, with stock valued at £l2O. brought the total assets to £123. and left a deficiency of £276. Bankrupt stated that she commenced business at Russell in December last year, with no cash of her own, the stock being obtained on credit. The business was all right at the start, but ii had later fallen away. She had drawn only £l2 for herself between the time she commenced business and when she filed her petition last month. She attributed her failure to inexperience and not being able to devote the whole of her attention to the business. owing to sickness.

In evidence, bankrupt said she had no assets except the stock in the business and a third interest in an estate, contingent on her outliving her mother and sister. She would be agreeable to sign a sufficient portion of her interest in the estate to creditors In pay 20/- in the £l. One of the creditors said lack of experience seemed to be the cause of bankrupt’s failure, but he was astounded that a business could be opened entirely on credit. The official assignee said that bankrupt had been quite honest and apparently only mismanagement was responsible for her position.

Creditors authorised the official as signec to dispose of the stock.