LEGACY FOR BANKRUPT,

New Zealand Herald, Volume LXI, Issue 18710, 16 May 1924, Page 7

LEGACY FOR BANKRUPT,

DOUBLE STATED DEFICIENCY.

FAILURE IN SOFT GOODS.

INSUFFICIENT CAPITAL.

The admission by a bankrupt, Thomas Oscar Stanley (Mr. Matthews), that he had been left a legacy under his father's will, which would more than meet hi 3 liabilities, caused an unusual termination to a creditors' meeting yesterday. Bankrupt stated that, with a partner, he started a soft goods retailing business in 1920. Each subscribed £50 capital and borrowed £100 from the Repatriation Department, but this was not enough * and their lack of business experience was also against them. la April, 1921, the partnership was dissolved and after selling the stock alt debts were paid with the exception of £60 due to the Repatriation Department. Bankrupt then started on his own account, but inability to collect book debts greatly hampered him. In reply to the Official Assignee bankrupt admitted that a judgment order was obtained against him about a year ago, but he hoped -to improve his position and so continued. Cross-examined by counsel for a creditor, bankrupt admitted that in April, 1923, he married while indebted to one firm for £260. He did not consider his position as hopelessly insolvent, as he expected to receive about £5000 under his father's will. The will, however, was altered on his father's deathbed, bankrupt receiving only £500. Counsel stated that even £500 would alter the position, and that it would be unnecessary to question bankrupt further. The meeting was adjourned pending inquiry by the Official Assignee into the bearing of the legacy on the case. The estate showed liabilities to unsecured creditors amounting to £454 14s lOd, and assets, comprising stock-in-trade and book debts, amounting to £145, leaving a/ nominal deficiency of £209 14s lOd.