The New Bankrupt Act.
The Times, 1824-12-02T00:00:00

This act, wbich was passed on the 21st of June last, is to take effect on the 1st of Maa, 18)5; except those clauses that relate to the certificates of persons becoming bankrupts previously to either of those dates, wbhich took effect upon the passing of the act. After stating the expediencv of amending, simplifying, rant con- solidlating the existin1, bankript laws, the act proceeds to repeal the several enactments respecting bankrupts from the34th Henry VIII., down to the 3d Geo. IV. c. 81. It then 8ets forth the description of persons to be dleemed traders liable to become bankrupt, which includes all bankers, brokers, underwriters, and persons insuringships, or their freight, or other matters, against perils of the sea; warehousemen, wharfingers, packers, builders, carpenters, slipwrights, victuallers, inTkeepers, stage-coach proprietors, 'brewers, maltsters. dyers, printers, bleach- ers, ftillers, scavengers, manufacturers of alum or kelp, cattle or sheep salesmen, and all permons engaged in any traflic of drawing and redrawing, negotiating, or discounting, bills of exchange, pro- missory notes, or negotiiable securities, except exchequer, navy, or victualling bills, or ordnance debentures; and all persons making bricks or burning lime, for sale, being tenants, lessees, or partners in such trade or undertakinig; and all persons using the trade of merchandise by way of bargaining, exchange, barterisg, commission, consignment, or otherwise, in gross or by retail ; and all persons, who either fbr themselves, or as agents or factors for others, seek their living by buying and seling, or by buying and letting tor hire, or by Worknanship of goods or commodities. This liability is stated not to extend to any farmer, grazier, common la- bourer, or workman for hire, receiver-general of the taxes, or member of or subscriber to any itcorporated, commercial, or trad- ing companies established by charter, or by or under the authority of anyj act of Parliament. The following acts, ilone with intent to defeat or to delay his creditors in the recovery ot thteir debts, are to be deemed acts of bankruptcy by a trader :-Departing the realm, or being out of the realm, remainingabroad ; departing from his dwelling-house, or otherwise absenting himself; beginning to keep hin house; suffer- ing himself to be arrested for any debt not due; yielding himself to prison; suffering himself to be outlawed ; procuring himself to be arrested, or his gooris, vaoney, or chattels to be attached, seques. tered, or taken in execution ; surrenderinK, conveying, or transfer- ring any of his property, real or personal. It is also to be deemed an act of bankruptcy in a trader to declare himself insolvent, or unable to meet his engagements, at a meeting of his creditors ; to lie in prison, when arrestel tor debt, for 21 days ; to escape out of custody, being so arrested; to petition to take the benefit of the Insolvent Act; to file a dleelaration of insolvency in the bankrupt office; or to compound with a petitioning cretlitor for more in the pound than the other creditors were to receive ; in which last case, the creditor so compounding forfeits his entire debt. Traders having privilege of Parliament, and commirtinf nn of the foregoing acts of bankruptcy, may be proceeled against like other traders, except that they are not subject to be imprisoned, save t cases made felony by this act; and traders of this class are to be deemed to have commiitted an act of bankruptcy in not pay- ing or satisfactorily compounding with a creditor whe sues them, withinone month after service of suimimonis, and entering an appear- ance to the action within that period; or in disobeying an order of any court of equity, (or in bankruptcv or lunacy,) for payment of money, after seryvce, and peremptory day fixed. The petitioning creditor must give a bond to the Liord Chancellor, In the penalty of 200., which, in the event of his failing to esta- bli:h a debt, or prove an act of bankruptcy, and it appearing that the commission was taken oat fraudulently or maliciously, his Lordship may assign to the party aggrieved, for the better recoverv of the satisfaction to be made to him for the dansageesiehes sustained. 'To support a commission, a petitioning creditor's single debt (or that of him and his partners) must asniount to 1001. or upwards ; that of two petitioning creditors, to 1501. ; andl of three or more, to 2001. It is not necessary that the debt be payable at the time, if incurred upon valuable consideration, whether security vas given or not. After several clauses relating to joCht commissions, the regula- tions to be observed by commissioners, their fees, powers, &c., the act goes on to provide, that no commission shall abate by reason of a demise of the Crown, nor upon the death of the bankrupt after adju- dication. The messenger Is empowereel to break open any place where the bankruptor any of his property is reputed to be, an seize upon his body, or such property in lreland or Scotland (with the observance of several additional forms) aswell as here. He may also obtain a search-warrant where property of the bankrnpt is sworn to be con- cealed; and persons actinig In obedience to such warrant are pro- tected from actions, provided they comply within six days with a demand for the perusal anrd a copy of the same. Alt persons reftising to obey the sumtmnons of the commissioners may be apprehetided; and those who refuise to be examined, or to produce documents, may be commtitted to prison ; as well the bank- rupt, or the bankrupt's wife, as other persons. In the event of their bringing actions of false im.prisontment, the Court may look at the whole examination, whether set forth in the warrant or not ; and the defendants have the benefit of it, if it appears that the olain tiffi were la.wfullv comTmitted. Such actions arelimiteel to three&months, and if the plaintiffs fail, the defendants shall recover ilouble costs. The commisydoners may appoint assignees lntil others are closen by the creditors; and if ths former (1o not giye up the property to the latter withiin ten days after notice, they shall forfeit 200). each. Sereral clauses follow, relatinlg to the proof of debts; to the ap- pointment or removal of assignees; te the sale of the bankrupt's property, or of the goods of other perSons in his disposition, &c. A dlstress is not to be available for more than two years' rent due, the landlord to prove under the commission for tie rcsidue. All bonea Jde conveyanices, payments, contracts, executions, and attachments, niade or levied, without notice of an act of bankrupt. cv, two munths before the issuing of a commission, shall be valid. No title to property sold under the commission shall be impeached, unless the commission besuperseded. The assfgnees are empowered (witb the consent of the major part of the creditors) to comnpound debts, or submtit disputes to arbitrar tion; and they may not, without such consent, commence a suit in equity. Next followi various clauses relating to actions or suits, by or against the assignees, the registry of proceedings, &c., whici Rearly pursuc the words of the enactments already in force upon thi8 subject. Aa sums of money forfeited under this act may be sited for by the assIgnees, and divided amongst the creditors; and if the creditors shall have been fully paid, one moiety of the surplus of such for- feitures shall be pald to the King, and the other to the poor of the parsshwlsere the bankrupt resided. Assignees disobeying directions to pay or invest money arising from the bankrupt's estate, or retaining ot employing it, shall be charged 201. per cent. interestupon it: and if any essignee become bankrupt, having bankrupt's estate wilfully reta:ned und employed by himn, his certificate shall not discha his future effects in re. spcet of it. The commissioners, having audited the assignees' accounts, shell at a public meeting of creditors to be convened within from 4 to 12 months after the issuing of the conmmission, order such patt of the net ptoduce of tle bankrupt's estetc in the lbands of the assi8g | nees as they shall think fit, to be divided lbrtlihvith amongstt tiie creditots; and if the estate be not then wholly divided, the final dividend shall be made within 18 months after the issuing ol'the commission; unless where a suit. be depending, or any part of the estate standing out undisposed of; or utiless some other estate or effects of the bankrupt afterwards come to the assignees; in whichl case, they bhall, as soOt as possible, convert such property intomoney, and slivide it amongst the creditors within two calendar months after It EbaU ke so converted. A ban rupt not gurrendering within forty-two days after being declared is bankrupt, and eubrmitting to be examined or not rsaking Iull distcoyery or his estate and effects; or not elivering up hiJ goods, books) papers, &c,; or removing, concealing, or embezzling any part of hils property to the value of 101., or any doquments rc- lating thereto, shall be deemed guitty of felony, and liabil to be transported for liFe, or for Ruch term, not ;less than seven years, as thle Gourt shall adjudge; or shall be liabIl tobe imprisoned only ;_ or i aprisoned and kept to hard labour for any term no, exceeding scven years. Tle. bankrupt must, if required, deliver up his books, papers, and writings to thie assignees, upon oath; he must attend thei upon reasonable notice, to assist in making out the accoants of hij3 estate ; and ray at all seasonable tinmes, before he finishes his examination, inspect his accounts in the prevence of his Assignees, or persons ap- pointed by them, and bring with him two persons to assist him ; and after obtalning his certificate, he is bound to attenhi the assignees to settle any accounts between his estate and any debtor to, or cre- ditor thereof; or to give evidence relating thereto in any Court of Record ; or do anyact necessary fof4getting in the estate; for which attendance he Is to be paid 5s. per day out of his estate; but if he refuse to attend, &c;, he may be committed by the commis6ioners to the county gaol, there so remain until lhe shall conforn to their satiAfaction, or that of the Lord C:hancellor. Ail persons wilfully concealTing any real or personal estate of the banlkr'ut, and not discovering the same within 42 days after the issuirof' the commi6sson, to one or more of the commissioners or assigneci, shall forfeit the sam of 10011.. aed <ouble the value of the property so concealed; and all persons iaking discovery thereof; after the time allowed to the bankrupt to surrender, shall receive five per cent. thereupon, and such further reward as tite major part of a meeting of creditors called for tlat purpose shall think lit, to be paid out of the estate recovered on such discovery The bankrupt to be discharged from his debts by certilcateof con- formity, signed by four-fifths in number and value of his creditors above 201.; not, however, unless the commissioners certifv to the Lord Chan1cellor that he has made a full discovery of his estate and effcts, and in all things contormed asaforesaid, and that theredoes not appear any reason to doubt the truth or l'ulness of such discovery and also that the creclitors have slgned in manner hereby directed nor unless the bankrupt mnake oath In writing that such certificate and consent were obtained without fraud; nor tnless such certificate shall after such oath, be allowed by the Lord Chancellor, against which allowance any of the creditors of the bankrupt rosy be heard before tlhe Lord Chaucellor. In cases of bankruptcy before the passhig of this act, certificates. signed by three-flfthF in nitniber and value of such creditors, may be Allowed, and will disekarge the bankrupt. In cases of bankruptay 8ubsequently to the passing of this act, after six calendar months from the last examination of the bankrupt, the certificate may be allowed, if signed by three-fifths in number and value of such creditors, or by nine-tenths in pumber, and will be a valid dis- charge. Andin cases of bankruptcy, either PteviousIy orsubsesuently to the p.ssigR of this act, after 18 calendar months from the last ex- amination, if three-fifths in number and value of such creditors, with the exceptiob of one whose signature is necessary in respect of num- ber or value, or if nine-tenths in number, with the exception of one whose signature is necessary to make up that proportion, shall have signed the certificate, the commissioners mray sign the same, arid the bankrupt may hereupon petition the Lord Chancellor for the allowance thereof, having first caused every creditor who shall not have signed, and whose signature shall be so necessary as afore- said, to be served with a copy of such petition, who ray be heard against such allowance ; and every such certificate, If allowed by the Lord Chancellor,'shall be a valid discharge. All contracts or securities made or given by bankrupts to inehice credltors to sign shalt be void. A bankrupt having obtained hirs certiOcate, sIlall be free from arrest for debts contracted before his bankruptcy; the certificate tol be evidence of the preceedings under the corsisission. But If he has been a bankrupt before, or compounded with his creditors, or taken the benefit of the Insolvent Act unless his estate pay 15s. in the pound, his future effects shall vest in the assignees for the benefit Uf the creditors under the commission, notwithstanding his certificate, which in that case will only protect his person from arresrt If a bankrupt's estate pays ten shillings in the pound, he is to be allowed 6 per cent. out of it, to be paid him b'y the assignees, proAided auch allowance shall not exceed 4001. ; if it pays 12s. l., he is to be allowed 7. per ceant., pr6vided such allowance shall not exceed u001.; and if it pavs 15s., he is to be allowed tO per cent., provided such allowance shall not exceed 6001.; but if it pays less than ten shillings in the pound, he sitall only be allowed so muich as the as- signees and commissioners shall think lit, n1ot exceeding 3 per cent. In joint comtniRsions, where a stnffciertt dividend shall have been paid utporn the joint estate, and upon the separate estate of one part. ner, he shall be entitled to his allowAnce, although the others be not entitled to any. No bankrupt shall be entitled to his certificate, or to be paid any such allotvance, and his certificate, if obtained, shall be void, if he shall have lost by any sort of gaming or wagering in one day 201., or within one year next preceding his bankruptcy 2001. ; or a like sum by stock-jobbing within that period ; or shall, after committing at act of bankruptcy, have destroyed, altered, mutilated, or falsified, any of his books, papers, wrintugs, or securities, or made or been privy to the making of auy false or fraudulent entries in any book of account, or other document, with intent to defraud his creditors; or shall have concealed property to the value of 101., or upwardrs; or if lie shall know of any false debt proved under the commission, and not intorm tIe assignees thereof within one month after such knowledge. A bankrupt is not to be liable upon any promise te pay a debt discharged by his certificate, unless itbe in writing. The assigniees, inicase of surplus, sharll atccount and pay it to the bankrupt; previously paying the creditorsinterestupon their debts,to be calculated from the proof thereot'-those creditors whose debts are now by law entitled to carry interest in the event of a surplus, first receiving theirs at the rate by law payable thereon; and then all other creditors to receive at the rate of four per cent. If nine-tenths in number anti value of tre creditors agree, after the last examination, to accept a composition, the Lord Chancellor may supersede the commission. Lastly, this act is to be construed beneficially for creditors, not altering the present practice in bankruptcy, except where expressly declared, and is to extend to aliexis, delizens, and women, it is not to render Invalid any commission of bankrt ptcy now (or at the time of its taking effct) subsisting, or any proceedings tlhercunder, except as specifically enacted; nor is it to extend to Scotland or Ireland, except where those countries are expressly named. T7IE NEW BANKRUPT ACT.