BANKRUPT MECHANIC

Otago Daily Times, Issue 22022, 3 August 1933, Page 15

BANKRUPT MECHANIC

MEETING OF CREDITORS A meeting of creditors in the bankrupt estate of John Sidney Ham, of Wellington, a mechanic, was held on Tuesday afternoon. The official assignee (Mr J. M. Adam) presided. The bankrupt was represented by Mr E. J. Anderson. The bankrupt’s debts to unsecured creditors were £95 12s sd, and he had no assets. The principal unsecured creditors were as follows:—Stafford Hospital, £ls 15s; N.Z. Typewriter Supplies, Ltd., £ls la; Barton and Trengrove, £l3; W. W. Ashby, £9; James Johnston, Ltd., £7 7s Od; F. Meenan and Co., £7 ss. The secured creditors were; —C. H. Austen and Co., £6 10s; F. W. Pile, £139. In a written statement the bankrupt said that in May, 1920, lie had purchased a boarding house business in Dunedin for £350, the sum of £SO being paid as deposit. He borrowed £35 from the Otago Finance Agency, and a further £ls was advanced by the agent through whom he bought the place. Rent amounted to £3 a week, and a further £2 a week had to be paid off the principal and interest, interest being at the rate of G| per cent. The Finance Agency had to be repaid weekly amounts and the agent 15s a week, so that his nett outgoings for rent, etc., were approximately £0 10a per week. When he found that he could not make the,boarding house pay and was unable to pay accounts as they came in he decided to sell, and on obtaining a cash offer of £250, he sold, thus losing £IOO on his deal. The proprietor of the boarding house was then paid off in full, as were the Finance Agency and the agent. He then had to borrow £l2 10s to replace certain furniture of his own which he had to leave in the boarding house. During the year after he left the boarding house he endeavoured to pay off his outstanding accounts, but was unable to make much headway and was pressed by 6ne or two creditors. He then had a private meeting of his creditors, and it was agreed by all except one creditor that if he could raise a loan of £IOO they would accept a payment of approximately 10s in the £l. He was unable to raise the money, but Inter all agreed that he should pay into a fund, and each creditor would receive a pro rata division every three months. The creditor who at the original meeting had insisted on being paid 20s in the £1 would not agree to coming into line with the others and issued a summons against him. Although he had been previously offered 5s a week off the account the creditor caused the bankrupt additional expense by issuing a judgment summons, the court making an order for the payment of 5s per week. During the last three years, the bankrupt added, he had used all his available money to pay creditors, leaving himself barely sufficient to live on. This naturally had meant expensive living for him, as he had not been able to take advantage of good buying. He assured all his creditors that if they allowed him time he would do his utmost to satisfy them all, but one or two had insisted on their accounts being paid, and with a threat of summons be had been left no option but to file. He was a married man with two children dependent upon him, and his present earnings (£4 16s Sd) were barely sufficient to make both ends meet. His furniture was under hire purchase, and be was paying 15s a week on it. He was at present in arrears with instalments, and the owner was threatening to terminate the agreement and seize the furniture. He was unable to make any offer to his creditors.

In giving 'evidence the bankrupt said that the furniture had cost him £2OO. He had been earning £5 15s a week at the time. The estate was left in the hands of the official assignee.