INHERITANCE LOST.

New Zealand Herald, Volume LXVII, Issue 20722, 15 November 1930, Page 13

INHERITANCE LOST.

TOTAL OF OVER £30,000. MAN AND WIFE BANKRUPT. UNSUCCESSFUL INVESTMENTS. *'To all intents and purposes there are no assets and I am afraid there will he nothing for unsecured creditors," said the official assignee, Mr. A. W. Walters, at a meeting of creditors yesterday of Harry Francis Butler, retired, of Arney Crescent, Remuera, and his wife, Mrs. Ethel Harriet Isabel Butler. The assignee read letters from several creditors who stated they were unable to be present, but would not oppose bankrupt's discharge. Mrs. Butler's financial schedule showed unsecured creditors at £l5O, and total debts of £2049. Butler's schedule showed secured creditors at £4648, securities amounting to £4650, assets of £4l 17s 6d, and £3041 owing to unsecured creditors, leaving an estimated deficiency of £2999.

In his statement Butler said that in 1918 his father, a retired colonel in tho Imperial Army, died and left him a considerable sum of money. Ho was living at Marton at this time and received tho money from his father's estate by progress payments. One security in his father's estate was a mortgage on farming land in New Zealand for £BSOO, which he took over in part payment of his share.

Butler said bo bought a warehouse in Auckland, known as the Quay Bond Store, for £14,800, paying £4OOO in cash and leaving the balance 011 mortgage. He alleged that a considerable sum of money was misappropriated by an agent who was managing his affairs. Ho lost heavily in farming securities through the post-war slump, and got into arrears with the interest on the mortgage on the Quay Bond Store, in which he was merely a "sleeping partner." Finally, the mortgagee realised on his security, buying in the warehouse for £9500, and leaving bankrupt still in his debt for £2500.

Butler stated that in 1926 his brother allowed his wife £SOO a year and he went to England to get his brother to finance him, but the latter refused. Later his brother settled £SOO a year on his wife to enable him to support his family and educate his children.

Mrs. Butler, in her statement, said the circumstances of her bankruptcy were bound up with those of her failure.

In answer t6 a question, Butler said tho amount of his inheritance was £31,000. He had had no regular employment since he was a cadet in 1897.

In leply to a question regarding a debt of £65 to a wine and spirit merchant, Butler said it was over five years old and had been incurred when he was solvent.

The official assignee said it seemed clear that neither of the bankrupts had incurred liabilities since their insolvency becamo apparent. A motion, moved by Mr. Johnson, representing the petitioning creditor, that 110 steps be taken to facilitate bankrupt's discharge until he had made some effort to liquidate his debts, lapsed for want of a seconder. Counsel contended that if bankrupt's allowance of £SOO a year had not been stopped he should be able to make some payment to his creditors.

A motion that Butler's discharge be facilitated was carried. The assignee remarked that Mrs. Butler's discharge was not likely to be opposed, provided her husband's was granted.