VIEW OF BANKRUPTCY

Southland Times, Issue 22131, 27 September 1933, Page 6

VIEW OF BANKRUPTCY

MISUSE OF “STIGMA.” JUDGE’S STRONG OPINION. Mr Justice Lukin, in the Bankruptcy Court in Sydney recently, almost indignantly rejected an opinion by the advocate for the debtor that a stigma attached to a man who, being financially embarrassed, filed his petition in bankruptcy. His Honour said that any man could avail himself of the Bankruptcy Court in such circumstances, without incurring what had been described as a stigma. Counsel was applying for an order against three judgment creditors who were levying on the goods of the debtor. His client’s assets exceeded his liabilities, but he was temporarily embarrassed. Unless there was a stay of proceedings, his goods would be sold in a day or two. Arrangements had been made by the creditors to lend him money to carry on. His Honour suggested that the difficulty could be overcome by the debtor filing his schedule. Counsel replied that the assets were greater than the liabilities. His Honour: Is there a man in the community who cannot go bankrupt? Is there anything to prevent a man who can pay 50/- or 100/- in the pound filing his schedule? Counsel: There is the stigma attaching to it. His Honour: This word stigma is used by persons who do not know the meaning of the word bankruptcy. To say any stigma arises is to talk nonsense. Your remedy is for the debtor to file his petition, and have a receiver appointed. After further argument counsel said he would not press the matter, and the Judge, remarking that he was asking for a futile order, refused to grant the application.