FORCED TO FILE

Sun (Auckland), Volume IV, Issue 1047, 11 August 1930, Page 11

FORCED TO FILE

ACTION BY RIVAL FIRM “UNFAIR” SAYS SOLICITOR “It seems unfair that bankrupt ! should have been forced into this post j tion for the sake of a few pounds. Tha whole action savours rather of a desir* . of a rival firm to end his business than of an honest desire to recover thi money.” This was the comment of Mr. T. Oliphant, who appeared for th« principal creditor at a meeting in the estate of Thomas Edward Avery, of 53 Jervois Road, Ponsonby, held before ■ the official assignee, Mr. A. W. Watters, this morning. Bankrupt, who is a sign writ er, sa d ! in his statement that he owed a total of £l5B, all to unsecured creditors, i He had been out of work for 18 months prior to November, 1928, when hornet another out-of-work signwriter and they agreed to co-operate. At that time he owed about £6O or £7O, Ini eluding rent. The two men agreed j that Avery should find the work and • his partner should do it, the proceeds to be divided equally. Business was not fast in coming forward and it was decided that better progress could be made if the men owned a car to be used in canvassing and in travelling | to distant jobs. Accordingly Avery approached a large motor firm in the city and it was agreed that he should take a secondhand car, in- return for which he should do all the sign-writing for the firm up to £lO a month until the debt was paid. However, this arrangement was broken by the motor firm after Avery had paid in the equivalent of £54, and he was then unable to keep up the payments. JUDGMENT SUMMONS A meeting of creditors had been j held and it was agreed that bankrupt | should be given three months* grace in which to straighten out his affairs, but one creditor, a sign-writing firm j from which bankrupt had received materials, issued a judgment summons against him and he was forced to file, j He had practically no assets except a little furniture in his home. The net earnings over the period the men had been in partnership amounted to £241 Ss 9d each, or an average of less than £3 a week. There was less I than £1 a week left for housekeeping j expenses after £1 10s had been paid for rent and 2s 6d toward the arrears. The assignee, in reply to an interjection from a creditor, pointed out that, although the purchase of a car might not have been advisable, the method of payment in labour was a wise one. The estate would hare been in a far worse condition had bankrupt not been doing his best to earn a living. The creditors agreed unanimous.'v to instruct the assignee to facilitate bankrupt’s discharge, although he he would be unable to make any offer.