WIFE'S BANKRUPT ESTATE.

New Zealand Herald, Volume LVIII, Issue 17966, 16 December 1921, Page 4

WIFE'S BANKRUPT ESTATE.

*>■ . DENIAL OF RESPONSIBILITY. WILLING TO PAY CREDITORS. The extent to which a husband is responsible for his wife's business transac. tions and losses formed the main point of discussion at a meeting of creditors held ' yesterday in the bankrupt estate of John McKenzie, fruiterer, of Taumarunni The official assignee, Mr. W. S. Fisher who presided, stated that bankrupt was ■ th a husband of Mary McKenzie, who was i ajudicated a bankrupt op April 29 last. .'' At a previous meeting, steps were taken "' to have the bankruptcy transferred to • Auckland, and a resolution passed that' . the husband be declared bankrupt also, "' I The latter had absolutely refused to sign 1 a petition in bankruptcy, and proceedings , therefore had to be taken which entailed : an unnecessary expense of £14. Thin wer e 54 claims against Mary McKenzieV estato, totalling £3400 16s 4d, the assfts amounting to £413. The estate would pay about 2s in the £. John McEenzie's •.•■..'' Bchedule showed liabilities amounting to ;■ V £230. The assets were nil, and there were no secured creditors. Examined .by Mr. Fisher, bankrupt stated that lie was a road contractor, and the Taumarunui business was entirjy his wife's affair. He had no connection with • it beyond I working about the place, ordering goodsj under his wife's direction, and occasionally signing cheques in her naiije. i . He. would recogntee no liability whatever in connection with tho business ether, than giving his assurance that could he obtain certain contracts, and obtain the money, every creditor would be rj&id within a year. . Mr. Fisher stated that although own? money to 54 creditors, Mary* McKenzie : had sold tho business for £1250, a price considerably under its value, and had made arrangements to pay away the whole, of tho money to four creditors, who had ; : been strongly pressing their claims. ; X Bankrupt stated that he would haw contested tho creditors' petition in.'tte Supreme Court, had he had tho mone)',' :; ... There was .practically only one claim, fert: £200, in his own schedule, and tins ims a business liability for which his wife;., was entirely responsible. , The ofßcial assignee stated that the only ; j. course open for creditors was to whether they believed McKenrieY state-, ment that he was a mere cipher in the. .business, or whether the responsibility was such that he should share the labilities and expenses equally with his wife. The official assignee was empowsfHl to r j take whatever steps he deemed aweary, v after consultation with the Crown v solicitor. -.