IN BANKRUPTCY

Wanganui Chronicle, Volume 74, Issue 58, 10 March 1931, Page 5

IN BANKRUPTCY

W. 0. CASBOLT ESTATE EXAMINED BY CREDITORS A meeting of creditors in the bank rupt estate of Walter Oram Casbolt, City Council employee, was conducted yesterday by the Deputy Official Assignee, Mr E. M. Silk. Bankrupt was represented by Mr J. M. Hussey. Statement of Accounts Bankrupt submitted a statement of his accounts, this revealing a deficiency of £199 5s sd. The only asset shown was a house property at Castlecliffi valued at £6OO against which there was a mortgage of £6OO. Unsecured creditors were shown as claiming £175 4s sd. There was one secured creditor, Roderick Robson, who claimed £6OO in respect of the fiveroomed house in Manuka Street, Castlecliff, the estimated value of which was shown as £6OO. There was a further liability of £24 Is, this representing the amount of judgment obtained by Roderick Robson against Earl Clifford Wills. This brought the total liabilities against which there was no security to £199 5s sd, bankrupt revealing a deficiency of this amount in his statement. The unsecured creditors were: T. Warnock £2O, H. Hcwit £4 Ils; Dr. Cook 10s fid; A. O. Dawson £1 Ils lid, W. R. Dale £3 10s Bd. Public Hospital £3; J. D. Hammond £4 7s 6d, Anderson Shoe Co. £1 is; Pyramid Lodge £2 10s 4d. Crighton and Newman £1 ss. Pursers Ltd. £3 6s fid. Drapery Sample Rooms £2 10s. Dr. Wall £3 3s, Miss Price £3. F. W. Casbolt £l24.—Total £175 4s sd. Bankrupt’s Statement “I bought a house property and section in Manuka Street Castlecliff, from Mr Far] Clifford Wills about ten years ago for the sum of £950,” read bank rupt’s statement. "I was living in this house for about S years. There were two mortgages on the property when T bought, one for £OOO and an other for £l5O. T paid £lOO cash of mv own and borrowed £lOO from my brother. This sum has not been repaid. I had very little cash left. During the time I was in the house T erected a fence around it. put in the electric light and erected a wash-house, besides generally improving the place. Ono of my daughters was delicate and my wife was also in ill-health. The expense of the house, illnesses and doctors’ expenses. together with travelling expenses were such that I graduallv got behind with niv accounts. The Matipo Land Comnanv held the second mortgage for £l5O and I arranged with them to take the house over and T came to live in Wanganui. The Matipo Company let the house to various tenants and. I understand, paid off the mortgage to themselves out of the rents.

They also paid the interest on the fust mortgage and the rates, although the property was still in my name. When the company made default in the payment of the last instalment of interest the first mortgage issued a summons for same against Mr Wills who joined me in the action as a third party and judg nient was subsequently obtained against me for the amount of the in terest. The mortgagee intends to enforce this judgment and as 1 am unable to meet my liabilities I have been forced to file my petition in bankruptcy.

Placed on oath bankrupt, in answer to the D.0.A., said that he was a married man with a family of three whose ages were 11, 16 and 18 years. None of them was working. He was now drawing a salary of £4OO per annum. He had drawn thn foj 18 months or so. Previous to that he was drawing roughly £375 for say three years. Previous to that again ne was getting £350. Mr Hussey: He doesi’t get that n»‘t you know. There are deductions. Bankrupt added that there was a deduction of £2 a month for superannuation fund. He did not think there was any surrender value in the fund.. Solicitor’s Examination. Mr W. J. Treadwell, who appeared for Roderick Robson, examined bankrupt at length. Air Treadwell: Your object in filing is to get rid of this liability to Mr Robson? Bankrupt: To get rid of liabilities in every way. Mr Treadwell: Just answer my question. Your object in filing is to get rid of liability of £6OO to Air Robson? Bankrupt: T w r as forced into it. Mr Treadwell: What is this debt to your brother of £124? When did you incur that? Bankrupt: About the time of purchasing. Al’mt ten years ago. Have you paid him any interest?— Yes, a little for a start. When was the last payment you made?—About four years ago Further questioned by Air Treadwell bankrupt savl that he hail never had a statement oi account frun bis brother. His brother had agreed to let him off the interest on one oi two occasions when he was getting behind hand. Air Treadwell: Have you anything to show when you made the last payment to your brother. Bankrupt: I will have to look that up. Air Treadwell: Y'ou hive no assets at Castlecliff? —No. What about furniture?—That is in my w’ife’s name. Bankrupt admitted that all furniture in the house with the exception of th° piano was purchased with his money. That furniture was sold. Air Treadwell: Was any furniture brought up from Castlecliff to your present house?—Yes a few things.

Air Treadwell: The rest of the lur niture in your house was bought our of your money. Bankrupt: It i< in my wife's name. Air Treadwell: But bought cut. your money?—Yes. What is it insured for? —£150. Where is the policy?—At home. Can you produce it to the Assignee? —Bankrupt replied that he would and that the policy was in the State Office. Air Treadwell: You have talked a lot about sickness. How much do you owe Doctor Wall?—Three guineas. And Doctor Cook?—Ten and six. Have you paid your doctor's bills— No. I am in a lodge Air Treadwell: Then you are under no g rat liaEj ity to doctors or *o demists for medicine. Have you a Post Office Savings Bank account? Bankrupt produced a passbook which the D.O.A. reported as showing a credit of 3s lid. Air Treadwell: Has your wife a savings account?—Yes. You can produce the book? —Yes. Air Treadwell: 1 would like to see it. .Mr Hussey: There is two and six in it. Air freidwell: What rent do you pay for yoar present house? —Thirty shillings. Mr Treadwell: Al r Robson asked you from time to time to try and make some payment off this liability?—Yes. And you wouldn’t do it? —I couldn’t Air Treadw«-iJ: You threw the whole thing back on Air Robson. You just disregarded all your obligations to Air Robson and came up here to rent a house at 30s a week. —Aly wife can’t live at Castlecliff. ' Your debt to Air Robson didn’t mat ter in the least?—Certainly it did if I could have got on. Air Treadwell: What is •this debt to Aliss Price?—Rent for two weeks. What is the debt to Pursers? That is furniture I suppose and in your wife’s list. Have you made any arrangements with your creditors, other than Air Robson, that when this bankruptcy is over you will refund them ihe money? Bankrupt: No. T couldn’t tell them that. I told them I was forced into bankruptcy. K Air Treadwell: You say yo i were forced into it. You had a judgnont summons against you three months, ago. Have any t.rther steps been taken against you since then? —No. Thon you have had sometiu>ig Lko tnree months give a you. Air Robson: Nino months Mr Treadwell questioned bankrupt and his actions in filing.

<‘ln view of your statement that you filed to avoid paying Air Robson do you think that is an honest thing to do?” he asked. Advised Not to Answer, Air Hussey, for bankrupt, challenged this question. “I submit that the question is not allowable,’’ he said. Tho 1D.0.A.: I don’t see that it should not be answered. I say that it should be. Air Treadwell: I ask it Air Assignee. Mr Hussey: And I advise him to refuse to answer. Bankrupt did as advised. The D.0.A.: I will refer the question to my solicitor. In answer to Air Hussey bankrupt said that the house at Castlecliff was brought from Mr Wills. He (bankrupt) did not know Mr Robson in the matter. There was no personal liability to Robson. There was a second mortgage to the Matipo Land Company of £l5O. Tho Matipo company took possession of tho place after he left it. They let it and paid the interest on first mortgage and, ho understood, paid themselves. The house cost £950 and was bought on the top of the boom. A sum of £350 had been paid on it out of his (bankrupt’s) own money, leaving a Air Robson a debt of £6OO. He received a judgment summons from A T r Robson who joined Wills in it. Bank rupt did not know Robson in the matter at all. Mr Hussey: Mr Robson has got his remedy against Air Wills?—Yes. He also had a remedy against the Alatipo Land Company. They guaranteed the mortgage. Air Robson: You are quite wrong.

Proceeding, in answer to Air Hussey, bankrupt, said that he did not know who Air Wills purchased the pro perty from. Three hundred and fifty pounds of bankrupt’s money had “gone west” in it and Air Robson was in possession of the property and was letting it. The only application bankrupt bad received to reduce the liability was through his solicitor to pay £9O and release the whole of the debt. He had a judgment summons against him and the date of hearing was Afarch 3. He had filed on that date on the advice of his solicitor. Air Treadwell again examined bankrupt in relation to the mortgages on the Castlecliff property. “You haven’t paid the second mortgage?” he asked. Bankrupt: I think the Matipo paid it themselves.

Air Treadwell: Would it surprise you to know that you still owe £137 on it? Bankrupt: It was given to understand they paid it off. Air Treadwell: Who gave you to understand? Bankrupt: It would be Mr Wells if anybody. Mr Treadwell: Mr J. P. Wells? Bankrupt admitted that Air Wells had not actually told him it was paid off. but it was a surprise to him to know £137 was still owing. Mr Treadwell: What salary was owing to you when you filed?—£ls 13s 4d. Air Treadwell: Is that included in your statement of assets? —Bankrupt: No. Why not? What have you done with it? Bankrupt explained that it cost him £8 2s to file. Mr Treadwell: And the balance you kept yourself. I suppose? Although you were asked by me personally to liquidate your debt to Mr Robson, no mat ter by how small an amount, you refused to do so?—1 couldn’t do so. Air Treadwell: It is a poor look-out for mortgagees. The D.O.A. questioned bankrupt as to whether, seeing that he was in receipt of a salary of £460, he could make an offer to his creditors. Bankrupt- I can’t see how I can. Air Treadwell: If Air Robson were out of it you would make an offer then wouldn’t you? Air Hussey; The answer to that is he owes £124 to his brother. Air TrcadwMl: Air Assignee you might enquire into that debt to the brother. The meeting was adjourned sine die to allow the D.O.A. to make an investi gation of matters raised in the examin ation of bankrupt-