HAD A LIABILITY

Sun (Auckland), Volume III, Issue 800, 22 October 1929, Page 10

HAD A LIABILITY

BOOTMAKER WHO SECURED CREDIT HOPED FOR IMPROVEMENT An admission of having obtained credit when he was not in a favourable position financially was made to the acting-official assignee, Mr. V. PI. Crowhurst, this morning by Harvey Clough, a bankrupt bootmaker, of Taneatua. Mr. Crowhurst said this fact should not be lost sight of when Clough’s discharge from bankruptcy was considered. Clough should have called his creditors together last February, when he made out a statement showing his position to be uncertain. No quorum of creditors was present and the realisation of the assets was left to the assignee. Clough’s debts, £521 9s Id, were comprised of £229 17s Id due to unsecured creditors, and £291 12s owing to secured creditors. His assets were £328 14s sd, and the deficiency was £192 12s Bd. The possession of old stock, clearance of goods below cost, insufficient capital and stagnation of business were the causes of failure listed by the bankrupt. Pie took a lease of the Taneatua business in February, 1928, but business was not satisfactory from the beginning. He had £lO7 capital and was guaranteed a bank overdraft of £3OO. To augment his income, bankrupt had taken day work and had carried out repairs at night. He also worked in a fishing camp at Tokaanu, and, on his return, found 'no prospect of improving his position. Examined by Mr. Crowhurst, Clough said he had accepted credit since February last with the hope of improving his prospects for his creditors. Mi*. Crowhurst remarked that Clough had not informed his new creditors of the liability to the bank.