IN BANKRUPTCY

Southland Times, Issue 20447, 27 March 1928, Page 7

IN BANKRUPTCY

BOARDING-HOUSE KEEPER’S FAILURE. Befor* Mr J. M. Adam, Deputy Official Assignee, yesterday morning, an inquiry was held into the bankruptcy of Mrs Betsy Airey, a boarding-house keeper of Invercargill. Mr T. Meredith appeared on behalf of the creditors. The bankrupt’s statement was as follows:—“I took a lease of the Royal Oak boarding-house from Mr Bellett, in June, 1924, at a rental of £3 10/- weekly, to be increased to £4 from June, 1927. I bought the furniture in the boarding-house from Mr Bellett at the same time for £350, and of this I have paid all but £65. A year after I went into the boarding-house I became ill and had to employ a cook, to whom I paid £2 weekly, but I have been doing the cooking myself since September, 1926. I had a great deal of expense in replacing some of Bellett’s furniture and bedding that was useless. When I first took over the boarding-house I had 16 boarders, but during the last six months I have averaged only seven or eight. I charge 28/and 30/- weekly. I employ a girl at 32/6, and my own daughter at £1 a week. I do my own washing. During the past year I have been falling behind with my payments to Bellett, but lately I have been paying cash for everything. I have been unable to keep up my payments to Mr Bellett, and as he was pressing me, the only course I could pursue was to file. I have drawn very little from the boardinghouse, not even wages. I have nothing to show for my three and a-half years’ work, and would be better off had I pursued my former occupation as a nurse. I have no prospects and can make no offer to my creditors.” Questioned by the Official Assignee, Mrs Airey stated that her husband paid all his wages to her, amounting to £8 8/- every fortnight, the whole amount being used in the business. She did not keep a full set of books, but kept a board book for the purpose of checking boarders’ payments. She had no money from the business for herself as it took the full income to keep the house going. The past year had been bad from a business point of view, a number of her best boarders being transferred to the north. She had paid £lOO on the furniture when she went into the house. About £B2 was owing for rent. There were 14-bedrooms in the house, all of which were furnished. She possessed no outside property and could make no offer. It was decided that as the bankrupt’s only asset was the furniture the matter of its disposal be left in the hands of the Official Assignee. The amount due to unsecured creditors totalled £358. The furniture was the only asset and was assessed at £2OO, leaving a deficiency of £l5B. The principal unsecured creditors were:— James McCormack (milkman) £l9 6/7; Carroll and Thompson £ll 11/.; George Gibbs (coal merchant) £lO 6/-; Moir and Son Ltd. (furnishers) £lO 17/3; Matheson’s Ltd. £54; Progress Industrial Co-op. Society, Ltd. (grocers) £3O 4/10; F. Turnbull (baker) £2O; P. J. Bellett (boarding-house keeper) £136 16/3.