IN BANKRUPTCY.

Hauraki Plains Gazette, Volume XXXX, Issue 5448, 15 July 1929, Page 2

IN BANKRUPTCY.

A PAEROA CASE. STRONG COMMENT MADE. The adjoured meeting of creditors in the bankrupt estate of G. C. T. Bennett, of Paeroa, labourer, was held in the Courthouse on Friday. Mr R. S. Carden appeared for the debtor, who was present, together with sis creditors representing a majority in value.' Mr D. Leach was elected chairman of the meeting, and read the bankrupt’s statement of assets and liabilities, showing amount owing to unsecured creditors as £124, and total assets £l4, leaving an estimated deficiency of £llO. The debtor’s personal statement as to the causes of his bankruptcy showed that he was supporting his mother, an orphan child, and contributing to his brother’s upkeep in a hospital at Rotorua, as well as providing for his wife and three children.

Mr C. N. O’Neill, on behalf of some of the creditors, questioned the debtor, who admitted that he had seen in constant employment and that his wages averaged about 14s a day. He knew that these accounts were owing, but handed all his wages to his wife. He also admitted that he frequented hotels, but said he spent not more than 5s a month there.

Debtor was then questioned by some of the creditors concerning promises of payment he had made at various times and not kept, but his answers were of an evasive nature.

The meeting unanimously resolved that they were convinced that debtor’s bankruptcy had been brought about by extravagant living ; that the Crown solicitor be. asked to inquire into the matter with a view to a prosecution, and that if the Crown solicitor did not feel disposed to proceed, that the debtor’s discharge be suspended until he had- paid a dividend of such amount as the official assignee might think fit. The opinion of the creditors present was that the practice of certain people in running up accounts and taking advantage of the protection of bankruptcy in order to escape payment of debts was strongly to be condemned and discouraged.