BANKRUPT MECHANIC

Sun (Auckland), Volume III, Issue 795, 16 October 1929, Page 10

BANKRUPT MECHANIC

PETITIONING CREDITOR’S PLIGHT

MEETING ADJOURNED Attributing liis failure to lack of experience and the giving of guarantees with the various second-hand cars which he liad sold. Reginald George Allan, a motor mechanic, of Mount Eden Road, met his creditors this morning. The amount owing to unsecured creditors was £193 9s 7d, and to secured creditors £”4 15s. The value of securities amounted to £SO, while bankrupt’s only assets amounted to £25. There was a deficiency of £IG3 4s 7d. In his statement, bankrupt said that he started business in a small car garage in November. 1927, with about a:2O capital. He did well at the start and as business increased he moved into a garage in St. Mark’s Road in February of the following year. He did well there for six months, when he did only repair work. Then he started to act as agent for second-hand cars. He often had the cars come back through careless driving, and he consequently had to do further repairs without charge. His repair business did not keep up owing to his being oft the main road. Because he thought things would improve, and he had a chance of buying a truck and a car cheaply, lie raised a loan from a money-lender. Owing to a delay in obtaining the money he was unable to use it in the way he intended and he paid it to various creditors. He then found that he could not carry on and he decided to look for a job. The loan company then seized his chattels and sdS them. Since he had been working his relatives had given him assistance and a certain portion of his debts had been paid. More would have been paid had he not been adjudicated a bankrupt. H. was a married man, with one child, and lus present salary was £4 19s a week. Jfe could offer nothing to his creditor out of his wages. In answer to the official assigne.e, debtor said that on going out of business lie got in touch with bis creditors and informed them of liis move. He handed his wages over to his wife each week and she sent various sums to his solicitor to pay the creditors.. Mr. F. J. Newbury, who appeared for bankrupt, said that it was decided that lie was to pay the money out to the creditors, but if any one 'of them petitioned he would not be paid the money. One creditor had forced bankruptcy and he did not get his share. Mr. McLiver. who appeared for the petitioning creditor, said that it was obvious that the other creditors had been given preference to his client and he moved that the meeting be adjourned in order that the official assignee may make some inquiries. This was decided upon.