FARMER’S BANKRUPTCY

Sun (Auckland), Volume II, Issue 336, 23 April 1928, Page 10

FARMER’S BANKRUPTCY

UNLUCKY INHERITANCE UNFORESEEN LIABILITIES Earl Geoffrey Valentine . Bruce Nelson Clark, a farmer of 25, did not realise that when he inherited a portion of his father’s farm at Waiau Pa, he took over a large mortgage with it. Last January he sold his property, only to discover that instead of there being an equtty of about £1,600, he was faced with the repayment of a charging order of £2,200, owing to his father’s creditor. Unable to meet tho liability, he was adjudicated a bankrupt. He was examined this morning by the Official Assignee, Mr. G. N. Morris. Clark’s schedule showed £671 owing to unsecured creditors. His assets amounted to £6OO, consisting of property said to be worth £SOO. and book debts £IOO. A deficiency of £7l was revealed. “The position is really not bad,” said Mr. Morris, in summing up his examination. “It is quite clear that Clark did not know that the equity in the farm was not his.” Some time ago bankrupt entered into a partnership as a land agent, backed his partner’s promissory note for £IOO, and has not yet been repaid. He had taken no active part in the business. “There is no doubt that Clark’s partner has been taking advantage of the bo nkrupt. He came from Australia, and seemed to think that New Zealand would be a happy hunting ground. I do not know whether we can get the money out of him,” was the view of a creditor. The meeting was adjourned sine die.