PAID TWO CREDITORS

Sun (Auckland), Volume III, Issue 620, 23 March 1929, Page 13

PAID TWO CREDITORS

WHERE BANKRUPT’S CASH WENT COUNTRY STOREKEEPER FAILS (From Our Own Correspondent) HAMILTON, Friday. Mrs. Caroline M. H. McElwain, storekeeper, of Motumaoho, was examined in bankruptcy at Hamilton to-day by the official assignee, Mr. .1. H. Robertson. Bankrupt’s husband, Andrew McElwain. was also present. Liabilities to unsecured creditors were shown at <£99l 3s, and the deficiency as £694 14s. Bankrupt’s statement showed that in 1924 her husband had started a small store at Motumaoho. They had about £l3O capital. They found later, however, that the demand was more for a general store rather than for a grocery business, and they were forced to raise more capital. In the middle of 1928 they realised the business was slipping back. Bankrupt then took over a deed of assignment from her husband and he purchased a truck and began carting operations; £3OO had been raised from the security of the store and £260 was paid off the store’s debt. The official assignee asked bankrupt if she considered she was justified in paying certain amounts to creditors when she realised her position. He thought this most unsatisfactory. All the available cash, £4OO, had been paid to two creditors within three months of the bankruptcy. The Act provided in certain circumstances that the assignee could demand the return of ;v ments made within that period. The meeting then adjourned.