BANKRUPTCY.

New Zealand Herald, Volume XXIII, Issue 7656, 5 June 1886, Page 3

BANKRUPTCY.

Debtors' Examinations.

Lvaht and Stevens. — Mary Ann Josephine Leahy, in her examination before the Official Assignee yesterday, deposed that she was 4 widow with three yonng children, her husband having died nine months ago, His life was insured for £200, and after paymentof expenses and debts owing she had a balance of £125, which she invented in a building society. About the latter end of March last she had a boardiaghouse business offered to her, and agreed to give £250 for the goodwill and furniture, agreeing to pay £100 cash, take over a bill of sale for £100, and a promissory note for £s>o, and Mr. Stevens, her partner, guaranteed the rest. Whilst this negotiation was going on she wat a patient in the Hospital, but when she was well and investigated the matter herself, she found that the furniture was very inferior, and of little value, and tho boarders a most unsatisfactory lot. Altogether she was satis* fied that she had paid her £100 and become responsible for £150 more for • worthless concern. Her partner, Henry Stevens, left a good situation to join her a« cook and manager, and when it was found that the business was hopelessly bad, he obtained work outside, and put his earnings into the business. The holder of the bill of sale, who should have been paid £10 per month, foreclosed, and hence the reason for filing. With the exception of £20 book debts, there was nothing whatever available for the creditors, and herself and children were homeless and penniless. Henry Stevens, I the partner of Mrs. Leahy, was also examined on Qath, He was a 000k, and about the latter end of February last he joined Mrs, Leahy as a partner in a boardinghonse—« the Viotoria Diniiigrooms. The arrange. ment was that they should take over a bill of sale for £100, and pay £150 cash, besides giving a promissory note for £20— extra £10 being for costs. When they took possession on the 10th of March they found the place very bably famished, and the boarders a very poor lot. It seemed to him that the place had simply been prepared for selling. Of the 15 or 16 boarders only three or four paid them anything, and consequently they not been able to pay expanses. She bill of sale was repayable at £10 per month, but they were only able to pay one instalment, and the holder took possession on Saturday last, and thus compelled them to file. He did noli consider the furniture would satisfy the bill of sale, and he had nothing or any interest in anything further than was dig. closed in his schedule*