The Express.
London, England, 1861-08-08 00:00:00

THE BANKRUPTCY AND INSOLVENCY BILL.

This bill received the royal assent on the day of
the prorogation. The following are some of the most en-
portant changes made in the law :—Non-traders are to be
liable to the bankruptcy laws in respect of future debts.
The seizure and sale of the goods of • debtor under an coo.
cutioe fora debt above 501. will be an act of bankruptcy,
and all such sales most be by public auction, duly adver-
tised. Percentages are no longer to be taken from
linkruptie estates, and the official assignees and
messengers are to be greatly reduced in num-
ber, and paid by fixed salaries. At the first meet-
ing under • bankruptcy, the creditors may remove
the proceedings to say county court, or, if they think fit,
determine to wind up the estate under a private arrange-
ment, and also decide whether the bankrupt shall have any
and what allowance for support. The official assignee is to
collect the debts not extreding 101., and the court is to
order in whose custody the books and papers belonging to
the estate shall be deposited. The creditors are to de-
termine whether the estate shall be realised by au official
assignee or ass•gneee chosen by themselves, and in the
latter case may allow them the assistance of a paid manager.
All monies received by the assignees are to be forth.
with paid into the Bank of England to the account of the
accountant in bankruptcy, and in country districts where
there shell be no branch of the Bank of England, then into
such other bank as the court shall direct. The creditor'
assignee must every three months submit a statement of
his accounts, with vouchers, to the official assignee for
examination, and after such accounts have been passed the
official assignee is to send a printed copy thereof, or a
statement showing the nature and result of the transac-
tions and accounts of the assignee, to every creditor who
has proved under the bankruptcy. The proof of debts
may be made by sending to the enigma through the
general post a statement of such debt and of the
account, if any, between the creditor and the
bankrupt, together with a declaration signed by
the creditor that such statement is a full, true, and com-
plete statement of account between them. False declara-
tion is to be a misdemeanour. All statements of account
are to be compared with the books and papers of the bank-
rupt by the aasignees. The clarification of certificates is
abolished, and the bankrupt after the patting of his last
examination is to be entitled to an order of discharge.
Very stringent penal clauses are provided, and for a
variety of offences the court may summarily order
imprisonment for any period not exceeding one year,
or may refuse or suspend the order of discharge, or
attach conditions thereto as to future property. For
offences made taisdemeisiours under the act bank-
rupts may be tried in the court, with or without a jury, at
the option of the bankrupt, and on couviction may be im.
preened for any term not exceeding three years, and be
liable to any greater punishment attached to the offence by
any existing statute. The court may direct the creditors'
assignee, official assignee, or any creditor to act as
prosecutor, and the costs of such prosecution will be
borne in the same manner as the expenses of prosecu-
tions for felonies are now borne ; and other costs
incurred by such prosecutor not so defrayed are to
be paid out of the Accountant-General's Fund.
Most important facilities are afforded to enable a debtor
and his creditors to effect private arrangements under
trust or composition deeds. A majority of creditors is
number, including three-fourths in valuer may, on execu-
tion of a deed of arrangement, and registering it in the
court, bind a minority, and are to have the use of the court
in all came in which they shall require its assistance to de-
cide questions as to disputed claims, or any difference' that
=yams between the parties interested in the debtor's estate.
The court is not, however, to interfere in any manner
except its aid is invoked by some person having • direct
interest in the matter. Every deed of composition must be
registered. There an scarcely be a doubt that these alter.
ations in the law will not only greatly lessen the expenses
attending bankruptcy proceedings, but will be most accept-
able to the mercantile classes, releasing them from the
official trammels with which those proceedings have
hitherto been invested. It is believed that a bill will be
brought in next session to consolidate the law in one
statute.