MUST BE PAID.

Star (Christchurch), Volume LXVI, Issue 20479, 4 December 1934, Page 13

MUST BE PAID.

Young Bankrupt’s Debts Considered. SUPREME COURT ORDER. (Special to the “Star.”) AUCKLAND, December 3. Whether a concession should be made to bankrupt to facilitate his own advancement in preference to meeting his responsibilities was a question raised at the Supreme Court this morning, before Mr Justice Fair, when an application for discharge from bankruptcy was made by Frederick Henry Sagar, a lecturer at Auckland University College. The application revealed that judgment for £IOO was given against Sagar subsequent to a motor collision, when he was driving a car and was not covered by insurance. A judgment summons for the amount was obtained by the creditor and later Sagar filed a petition in bankruptcy*, thus avoiding payment. Counsel, in support of the application, sa.id that there was little likelihood of bankrupt’s being able to pay anything out of his salary. Fie submitted that there was no reason why the penal clauses of the Bankruptcy Act should be enforced, and emphasised that bankrupt was innocent of any consideration of fraud. His remuneration at the university was £5 10s a week and his expenditure, which included 11s a week for an insurance policy, totalled £3 ss. To facilitate his advancement bankrupt, in a few >*ears, would have t.o go to Cambridge to take a research degree, and it was not in his interests that this should be prejudiced by qualifying his discharge by any payment. Counsel for a creditor said that there were y*oung men in the city of the same age and social position as bankrupt, who were able to live on less than the salary* he enjoyed. He had filed in circumstances which made it quite clear that his intention was to escape payment of his debt. Counsel submitted that the debt could be paid by instalments without undue hardship. Comment by Judge. “Primarily a young man who incurs a debt should make some honest effort to discharge it,” said his Honor. “If he does not make that honest endeavour, then the Bankruptcy Act is not, in my view, intended to provide him with an avenue for escape.” Apparently bankrupt had not made any attempt to pay a portion of the amount for which judgment had been obtained, continued his Honor. He was entitled to file, but not to seek a discharge except on conditions which the Court might impose. It had been properly placed before him, said his Honor, that an order might prevent bankrupt from pursuing his studies abroad, but a man’s own advancement could not be provided at the expawise of his creditors. The only matter on which he had any doubt was whether he should reduce the amount of the debts. Bankrupt’s conduct did not encourage him to make any concession at all. His Honor said that he would make an order for discharge conditional on bankrupt’s debts being paid to the extent of 15s in the £, which would involve payment of £lOl, the payments to be made 'at the rate of 15s a week.