A

BIL L

To amend the Laws relating to Bankruptcy and
Insolvency.

[Note.-The Words printed in Italics are proposed to be inserted in the Committee.]

W

HERCAS it is expedient to amend the Law of Bank- Preamble. ruptcy and Insolvency, with a view to afford to Creditors

a greater protection against fraud and wilful extravagance; BE it therefore Enacted, by The QUEEN's most Excellent MAJESTY, 5 by and with the Advice and Consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the Authority of the same, THAT the provisions of this Act shall commence and take effect from and after the

day of

And be it Enacted, That previously to a Creditor of any Trader 10 obtaining the summons to such Trader, to appear before the Court of Bankruptcy, provided by the eleventh section of the Act made in the fifth and sixth years of the reign of Her present Majesty, intituled, "An Act for the Amendment of the Law of Bankruptcy," it shall be sufficient to state in the affidavit required by the said Act, that an 15 account in writing of the particulars of the demand of such Creditor, with a notice thereunder written requiring immediate payment thereof, has been either delivered to such Trader personally, or left for, or sent by post to him at his last known place of business or abode; and that the delivery of such summons shall be sufficient if either delivered 20 personally to, or left at the last known place of business or abode of such Trader; and such notice shall be in the form specified in Schedule (A.) hereunto annexed, instead of in the form specified in the said Act.

1.

2.

Account and payment, and

demand of

Summons of Trader

need not be personally served.

3. Further proof than

Debtor's oath, of good defence to Creditor's

demand.

4.

Court may take charge of Debtor's Property.

5.

Court to

appoint

Solicitor to

voluntary

Fiats.

And be it Enacted, That upon the appearance of any Debtor upon such summons before such Court, it shall be lawful for such Court to require such trader to prove to the satisfaction of such Court by other means, in addition to a deposition upon oath in writing, under his hand, that he has a good defence to such demand, or to some and what part thereof.

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And be it Enacted, That if any Trader so summoned as aforesaid shall not come before such Court within Four Days from the date of the said summons (having no lawful impediment made known to and proved to the satisfaction of the Court, at the said time, and al- 10 lowed), or if any such Trader, upon his appearance to such Summons as aforesaid, or at any enlargement or adjournment thereof (as the case may be), shall not prove to the satisfaction of the Court, in manner hereinbefore mentioned, that he has a good defence to the demand of such Creditor, it shall be lawful for the said Court, upon the request 15 of any such Creditor, and upon proof being given to the satisfaction of such Court, of the validity of his demand, and of the delivery or the leaving of such summons, and that Fourteen Days have elapsed since the delivery of the aforesaid account and notice, to issue a warrant in the form specified in Schedule (B.), hereunto annexed, directing 20 a person, to be named by such Creditor, and approved by the Court, and such person is hereby empowered to enter the place of abode or business, warehouse or other premises of such Trader, and to take such charge of the goods, securities, monies and property thereupon, as shall prevent the removal thereof from the said pre- 25 mises, unless a correct account shall be kept and rendered to him, if required, of the person to whom and the place to which the same are respectively about to be removed; and also to require a daily account to be kept of all the monies which shall be received and paid by such Trader; and such person shall continue on the said premises until the 30 Fifteenth day from the day of appearance named in the said summons, or such enlarged time as may be granted by the said Court in that behalf, unless such Trader shall have before such last-mentioned day paid, secured or compounded for the demand of such Creditor to his satisfaction, or have entered into a bond with Two Sureties, to be 35 approved of by the said Court, to pay such sum as shall be recovered in any action which may have been brought, or may thereafter be brought for recovery of the same, together with such costs as shall be given in such action.

And be it Enacted, That in all cases of Fiats in bankruptcy issued 40 against any Trader upon his own petition, such Court shall, upon the said Trader being declared bankrupt, appoint a Solicitor to work such Fiat, until Assignees shall have been chosen, and a Solicitor appointed by them.

And

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And be it Enacted, That it shall be lawful for the Court of Bankruptcy, acting in the matter of any bankruptcy or insolvency, from time to time, and at any time, to suspend or withdraw the protection from arrest now granted by such Court to any bankrupt or insolvent debtor, and to renew the same, at the discretion of the said Court.

And be it Enacted, That if any bankrupt or insolvent Debtor to whom protection shall have been granted, shall at any time fail to satisfy the Court that his bankruptcy or insolvency has arisen from unavoidable misfortune, and not from fraud, wilful misconduct, extravagance or gambling; or if it shall appear that such 10 bankrupt or insolvent has not discovered all his real or personal estate, and to whom, upon what consideration, and when he disposed of, assigned or transferred any part of such estate, and all books, papers and writings relating thereto; or if he shall not deliver up to the said Court all such estate, and all books, papers and writings. 15 relating thereto, as shall be in his possession, custody or power (except the necessary wearing apparel of himself, his wife and children); or if such bankrupt or insolvent shall have removed, concealed or embezzled any part of such estate, or any books of account, papers or writings relating thereto, or to any of his transactions; or if he 20 shall, within Three Months before the date of the fiat, or the filing of his petition for protection, in contemplation of bankruptcy or insolvency, or being in insolvent circumstances, have voluntarily conveyed, assigned, transferred, charged, delivered or made over any estate, real or personal, security for money, bond, bill, note, money, goods or effects whatsoever, to any creditor, or to any person in trust for, or to or for the use, benefit or advantage of any Creditor, or to any person who is or may be liable as surety for such bankrupt or insolvent; or if he shall, in contemplation of bankruptcy or insolvency, have destroyed, altered, mutilated or falsified any of his books, papers, 30 writings or securities, or made or been privy to the making of any false or fraudulent entry in any book of accounts or other document, with intent to mislead or defraud his Creditors; or if such bankrupt or insolvent shall, within Three Months next preceding his bankruptcy or insolvency as aforesaid, under the false colour and pretence of 35 carrying on business and dealing in the ordinary course of trade, have obtained on credit from any person any goods, chattels or property, with intent to defraud the owner thereof, or shall, within the time last aforesaid, with such intent, have removed, concealed or disposed of any goods, chattels or property so obtained, knowing them to have been so obtained, then and in any or either of such cases, such Court shall, and is hereby required, thereupon to withdraw its protection from such bankrupt or insolvent.

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6. Court may

withdraw

protection

from Debtor.

7.

Court rewithdraw

quired to

protection in certain

cases.

8. Assignees and Creditors who have proved Debts, to be deemed judgment Creditors.

Court to

cate thereof;

5

And be it Enacted, That the Assignees of any bankrupt or insolvent, when the accounts of any bankrupt or insolvent shall have become records of the Court of Bankruptcy, shall from that time be deemed judgment Creditors of such bankrupt or insolvent, for the total amount for which he shall thereby admit himself to be indebted to his Creditors, and that every Creditor of any such bankrupt or insolvent shall immediately after the proof of his debt in the said Court be deemed a grant Certifi- judgment Creditor for the amount of his debt so proved; and it shall be lawful for such Court, upon the application of such Assignees, or of any such Creditor, to grant to them or him a Certificate in the form 10 specified in the Schedule (C.) hereunto annexed, under the seal of the said Court, of such Assignees and Creditor respectively being Creditors of such bankrupt or insolvent to such respective amounts of debts; and it is hereby declared that such Certificate, when so sealed, shall have the same force and effect as a judgment obtained in any of Her Majesty's Superior Courts of Law; and that such Assignees or Creditor, as the case may be, shall be thereupon entitled to issue the same writ of execution against the body of such bankrupt or insolvent, after his protection shall have been withdrawn or suspended as aforesaid, as they or he could have obtained in case of the recovery of a judg- 20 ment against such bankrupt or insolvent, and the production of the said certificate to the proper officer of Her Majesty's Superior Courts of Law, shall be sufficient authority to him to seal such writs of execution.

and power to issue

execution after protection is withdrawn.

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And be it Enacted, That in case of the imprisonment of any bank- 25 rupt or insolvent under any execution to be issued in pursuance of any such Certificate, the said bankrupt or insolvent shall not be entitled to his release and discharge by virtue of any Act of Parliament for the relief of insolvent Debtors, until he shall first have applied for his release to that Court of Bankruptcy by which his protection 30 shall have been withdrawn or suspended, pursuant to and in conformity with the provisions in that behalf contained in an Act made and passed in the seventh and eighth years of the reign of Her present Majesty, intituled, "An Act to amend the Law of Insolvency, Bankruptcy and Execution," and the powers thereof.

And be it Enacted, That it shall be lawful for the said Court of Bankruptcy to order such portion of the pay, half-pay, salary, emolument or pension of any bankrupt, as on communication from the said Court to the Secretary-at-War, or the Lords Commissioners of the Admiralty, or the Commissioners of the Customs or Excise, or the chief officer of the department to which such bankrupt may belong or have belonged, or under which such pay, halfpay, salary, emolument or pension may be enjoyed by such bankrupt,

or

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