UNDER TWENTY-ONE.

Otago Witness, Issue 3772, 29 June 1926, Page 18

UNDER TWENTY-ONE.

BANKRUPT’S LEGAL LOOPHOLE. That bankrupt was under the age of 21 when lie incurred some of his debts and was, therefore, not liable was a point raised by Mr W. L. Moore on Thursday afternoon at a meeting of creditors in the estate of William Jarvis, a storekeeper. Bankrupt, in his sworn statement, said that in June of last year he bought out a Mrs Fitzgerald, of 60 Dundas street, Dunedin. She had a small general store and he paid her £75. He borrowed £IOO from his brother. The scales and fittings in the shop were worth about £4O and the balance of the money he gave for the goodwill and bought stock with the £25. He found at first that his gross weekly turnover was about £27 and it went up to about £36 or £37 until Christinas, then it went back again to about £27 or £2B. The arrangement he had with his brother was to repay him at the rate of £2 per week, and the rent until Christmas was 25s a week. After Christmas he tooic a new lease for three years at a rental of 32s 6d a week. The lighting came to about 30s a month. He took £4 a week out of the business for his own wages. He owed altogether £166, the largest creditor being Milne, Bremner (Ltd.) Although the business was not paying up till Christmas he had been paying his brother off all the time and he though that when that was settled ho could make a profit out of the business. In April he sold the business for £125 and with that money he paid his brother the balance owing to him (£22) and Scoular and Co. £lB 7s 6d, Reilly and e>o. £lB lbs 3d, Bing, Harris and Co £25 2s Id, Meenans £5, Robinson £4 17s, William Taylor £4 4s fid, Halton and Co. £2 16s 7d, Manhire and Hinchcliff £1 15s 3d, Mackerras and Hazlett £1 9s. Scoular and Co. and Reilly’s had issued summonses against him. Bankrupt said that he kept one book showing the daily takings and expenses. The only assets were some book debts worth about £5 and a bicycle worth about £3. He was a single man and iived with his parents. At present he was unable to make an offer to bis creditors. Mr Moore, who appeared for the bankrupt, then said that debtor was under age up till March 1, and payment for any goods supplied before then could not be claimed. Mr Moore added that bankrupt paid those who pressed him instead of calling his creditors together. His trouble was simply inexperience. As far as Milne, Bremner were concerned he was in the soup, as he had consented to judgment when he should not have done so. The meeting was adjourned till next Thursday to give the debtor an opportunity of ascertaining his position so that he could make an offer and so that the assignee could find out the amount that could be claimed in bankruptcy. The debtor’s principal unsecured creditors are Milne Bremner, £7l 2s ; W. D. and H. O Wills, £25 18s; L. R. Gardiner and Co.. £l4 7s 6d ; William Wright and Co., £l3 0s 7d.