BANKRUPT BUILDER.

New Zealand Herald, Volume LXVI, Issue 20263, 24 May 1929, Page 14

BANKRUPT BUILDER.

LOSS ON HOUSE CONTRACTS.

PURCHASE OF TUAKAU FARM

A GENEROUS MORTGAGEE. Losses incurred on three out of five contracts undertaken for tho erection of houses were in part blamed by William Robert. Troutbeck, builder, of I'apakura, in explaining tho cause of his bankruptcy at a meeting of creditors yesterday. Tho acting-official assignee, Mr. V. 11. Crowhurst, presided. A nominal surplus of £123 was shown in the bankrupt's schedule. To unsecured creditors he owed £7Bl. Dobts to secured creditors totalled £IOSO, against which was set £ISOO, the estimated value of securities, leaving a surplua of £450 under that heading On tho assets side, it was estimated that book debts would produce £435, and there was £2O cash in hand. With the addition of tho £450 surplus from securities, the bankrupt showed assets valued at £905 to meet -debts of £7Bl-

Explaining his business activities, the bankrupt said that he commenced as a builder on his own account five years ago, and built several houses, which he sold on small deposits, at I'apakura. Abuut two years ago he commenced contracting exclusively. On two of the contracts he was fairly successful, and made his wages and a profit. In three other cases he lost respectively his wages, £SO and his wages, and £IOO and lus wages. At that time he owed about £3OO, although ho had mortgages owing lo him on the I'apakura houses, lie purchased a farm at 'luakau, giving for it the money due to him on the houses. It was his expectation that the- farm would realise cash, with which he hoped to pay his creditors, but so far he had not been able to do that, and, owing to pressure by some of the smaller creditors, he was compelled to file. Cross-examined, tho bankrupt said that he was aged 28 and had a wife and one child. His drawings had been about £3 a week, but his domestic exponses had not been a chargo on his business, as his wife had been able to assist financially with tho housekeeping. His wife, however, was not able to aid him in meeting his business obligations. Remarking that the bankrupt was a hard worker, one creditor at the same time considered it was scarcely fair for the bankrupt, having lost on three out ol five contracts, to attempt to redeem his position at the expense of the merchants from whom he obtained materials. The second mortgagee on the Tuakau farm agreed to release the mortgage, and pass on the equity, estimated at about £350, for the benefit of the creditors, who recorded their appreciation of the offer. It. was agreed not to proceed further with one contract which the bankrupt had undertaken, but the assignee and two creditors were appointed to confer as to the desirability of completing another contract, which, it was estimated, could be carried out for an additional £BS, as most of the materials were on the job.