LEGISLATION BLAMED

Taranaki Daily News, 21 July 1933, Page 7

LEGISLATION BLAMED

COMPLAINT BY A BANKRUPT. STATEMENT TO CREDITORS. By Telegraph—Press Association. Christchurch, Last Night. A bankrupt who met his creditors before the official assignee to-day pleaded hardship following upon the recent legislation affecting mortgages. He attributed his bankruptcy, he said, to one class of mortgagor being protected and another unprotected. He was a first mortgagee over land and had been unable to obtain the money due to him under his mortgage before the time when he was required to pay certain money under his own chattels security to the Public Trustee, whereupon the Public Trustee seized his stock and assets, which were his means of livelihood. If this had not been done, he claimed, he could have carried on or realised on his business and obtained more than sufficient to satisfy his creditors. The bankrupt was Croydon Lee, fruiterer and storekeeper. Hk financial statement to the assignee showed that the amount owing to unsecured creditors was £233 10s and to secured creditors £316, the latter holding securities valued at £650. The total assets were shown at £506, leaving a nominal surplus of £273 It was explained on behalf of the Public Trustee that the bankrunt had been given 12 months in which to meet his liability under the chattels security and had been approached many times in an effort to come to an arrangement. A payment on account would probably have been accepted. -