BANKRUPTCY NO SHELTER.

Taranaki Daily News, 18 March 1921, Page 7

BANKRUPTCY NO SHELTER.

A YOUNG MAN CAUGHT. An unusual case of bankruptcy has occurred in a southern town, and it is remarkable as showing that contrary to the general belief, filing- a petition in bankruptcy does not necessarily annul all debts. A young man who figured in a fatal motor accident was sued for damages, the widow of the victim, who had four young children to support, being awarded £335 0s 2d with costs. Though unmarried and in receipt of £4 per week, he made no effort to discharge the debt. He disposed of his motor-cycle, and spent the proceeds on himself, and then, being pressed, filed a petition in bankruptcy. The Public Trustee, on behalf of the widow (who had to go out charring in order to keep her family) proved a claim for £4OO 18s 3d, being the amount awarded as compensation, plus costs and interest. This was the only claim lodged against the estate. The bankrupt maintained a somewhat defiant attitude, and stated that “as against his own wants he recognised no liability for the judgment against him.” Then the Official Assignee launched a bombshell by ■saying that he proposed to take 1 a course which had never been taken in a bankruptcy case before. He was voine to enforce section 125, sub-sec-tiong3 of the Bankruptcy Act, 1908, which said, “A bankrupt shall apply for his discharge within four months of the date of his bankruptcy, (a) If he fails to do so the Assignee may, by notice in writing, require hini to apply for his discharge, and he fails for ten days thereafter to take all necessary steps for this purpose, the Assignee may apply to the judge to have' the bankrupt committed for contempt of Court.” Such being the case, the 1 judge has power to miake any order he likes on application by the Assignee at the expiration of the time, and an order may be made on bankrupt’s salary. Also, his going _ . bankruptcy does not relieve him of the original debt. Thus the young man finds that lie has no alternative but to discharge his liability, and the process of “going through the Court has but added to hi» wo»»