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

TIIE BANKI?UPTC T AND INSO_LrENCT

BILL.

The following are some of the most important
changes made in the law :—Non-traders are to be
liable to the bankruptcy laws in respect to future
debts. The seizure and sale of the goods of a debtor
under an execution for a debt above £5O will be au
act of bankruptcy, and all such sales must be by
public auction, duly advertised. Percentages are
no longer to be taken from bankrupts' estates, and
the official assignees and messengers are to be
greatly reduced in number, and paid by fixed
salaries. At the first meeting under a bankruptcy,
the creditors may remove the proceedings to any
County Court, or, if they think fit, determine
ro wind up the estate under a private arrange-
ment, and also decide whether the bank-
rupt shall have any and what allowance f'or
support. The official assignee is to collect the
debts not exceeding £lO, and the Cuurt is to order in
whose custody the books and papers belonging to
the estate shall be deposited. The creditors are
to determine whether the estate shall be realised
by any official assignee or assignees chosen by them-
selves, and in the latter case may allow them the
assistance of a paid manager. All moneys received
by the assignees are to be forthwith paid into the
Bank of England to the account of the accountant
in bankruptcy, and in country districts where
there shall be no branch of the Bank of England,
then into such other bank as the Court shall direct.
The creditors' 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 transactions
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 assignee
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
complete statement of accounts between them.
False declaration is to be a misdemeanour. All state-
ments of accounts are tobe compared with tho books
and papers of the bankrupt by the assignees. The
classification of certificates is abolished, and the
bankrupt after the passing 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 misdemeanours under the act bank-
rupts may be tried in the court, with or without a
jury, at the option of the bankrupt, and on convic-
tion may be imprisoned for any term not exceeding
three years, and be liable to any greater punish-
ment 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 'ffs the expenses of prose-
cutions 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 arrange-
ments under trust or composition deeds. A majo-
rity of creditors in number, including three-fourths
in value, may, on execution of a deed of arrange-
ment, and registering it in the Court, bind a mino-
rity, and are to have the use of the Court in all
eases in which they shall require its assistance to
decide questions as to disputed claims, or any dif-
ferences that may arise between the parties inte-
rested in the debtor's estate. The Court is not, how-
ever, to interfere in any manner except its aid is
invoked by some person having a direct interest in
the matter. Every deed of composition must be
registered. There can scarcely be a doubt that these
alterations in the law will not only greatly lessen
the expenses attending bankruptcy proceedings, but
will be most acceptable 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 ses-
sion to consolidate the law in one statute.