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132

BANKRUPTCY

the composition or scheme cannot be approved unless it Disaualifications. —A bankrupt cannot during hia bankruptcy, runt, provides reasonable security for the payment of not less than seven or until five years after his discharge, unless the bankruptcy is shillino-s and sixpence in the pound on all the unsecured debts. annulled or he obtains his discharge with a certificate by the Where a trustee is appointed to carry out the composition or court that the bankruptcy was cause! by misfortune without m s- scheme all the provisions of the Act with reference to the remuneraact as a member of the Legislature, or as a justice of the tion of the trustee, the custody of funds, the audit of Ins accounts, peace mayor, alderman, councillor, guardian or overseer of the poor, S the control exercised bv the Board of Trade, apply m the tame member of a sanitary authority, school highway, or burial boaid, manner as they would under an adjudication. Further, the pro or select vestry in any part of the United kmghom. relating7 to the administration of property, proof of debts Annulment —An order of adjudication maybe annulled if the visions dividends, &c.? will also apply, so far as the nature of the ease and court is of opinion that it should not have been made, or that the the terms of the arrangement admit. tokrupt’s lebts are paid in full, or if a composition or scbeme Property divisible among the Creditors. of arrangement is approved by the court after adjudication. _ Sw-The court may also at any time after the conclusion No part of the law of bankruptcy is more intricate or has been of the bankrupt’s public examination, and after healing the Official the subTect of more litigation than this, and any detailed view Receiver the trustee, and any creditor, to all of whom previous of the effect of legal decisions can only be gathered by a perusal notice of the application must be given, grant the bankrupt a dis- of the cases • but the following general principles may be stated : charge either absolutely or under conditions, but subject to the The term ^property” includes not only property of which the foUomng qualifications, viz.: (1) If the bankrupt baa commuted bankrupt is the true owner, but property in his possession, °i'(ier> a criminal offence connected with the bankruptcy, the apphcati or disposition in his trade or business with the consent of the must be refused unless for special reasons the court determin owner , in such,. circumstances that he of is the reputed owner true owne trine reputed ownership tion of tlie doc otherwise (2) If the assets are not equal in value to ten shillings in the pound of the unsecured liabilities (unless the bankrupt can show that he is not responsible) ; or if proper booksbavenot beem kent • or if the bankrupt has traded after knowledge of insolvency, or 1ms contracted debts without reasonable probability of payment ;o failed to account for his deficiency ; ^^n^tZble bv rash speculation, gambling, culpable neglect, or by unjustihab P expenses or has taken or defended legal proceedings on frivolous of the bankrupt, itpin the three months progrounds •’ or has within three months preceding the receiving older of bankruptcy commit > bankruptcy petition, and thus lr^CS^SSh^“^nd;c, creditor or a^sig ruptcy. In such cases *

^

therefore e to the ^state. And

require the even where

r«Sed void L against

such conditions as the court may exPre^y;r^ranv^er of or colbl Jantwithhim^ Neither does it release the bankrupt from liability to criminal prosecution. Composition or Scheme of Arrangement.

proposal must be ^iS^repS by tSt officer, to be sent to to allow notice, together with a repo ty con_ cr ‘b! ^^t°tu by a sidered. It tire ^proposal , . iat^’the the creditors 0f anmeeting majority in number and three- th ^ ^ thereafter approved by who have proved their deb, ^ creditors who would be the court, it becomes binding p been adjudicated d bound by an order of discharge had ‘^debtor bee bankrupt. A similar proposal may3 be maaea^^^ and if entertained by t le cre (jester’s release will be the adjudication may ^ ^11^ Thg acquired property wili^otpa^to^l creditors out’^e se^en^OT ^ £d that ircannot ^wffh^usto^undone fn^rt emXm^l fall to the ground, e-eptm aspect . Of past transactions under •‘e PI hig liabilities under the approvadnoT b^ the^fflciid^BeceWCT ujmnlte is given a report must be t and the court must be c terms and on the .°f 0ffiL and ’ a^y creditor, that the satisfied after hearm calclqate(i to benefit the creditors, and proposal rs reasonabl nected with the bankruptcy have

XifSintef^r^nnl-it^^^^ was (independently of 11 ^terest in the property passed of the settlement, and deed. ^he same rule to the trustees on the marriage future applies to covenants to sett pad n0 interest at the date acquired property m which a uired by the bankrupt of the marriage (other than p i y n „ transferred before through his wife), ifExec such property's not actually ^ igted at the the bankruptcy. 77aS,,fbU0C,;oirand the proceeds of an date of the recemng or nmst with certain exceptions, execution m the hands °f tne ™ed over tQ the trustee. But and subject to deduction of cos , ^ trade, wearing all property held by the h^^value not exceeding £20, are excluded apparel and bed^ndiv1°sible amoim the creditors. With respect to from the property bdivisible among , ift legacy, or property Acquired bth“ othlrp^ts after the consisting of accumnlatims o ^ before he obtains his commencement of the kankr p y> ils . but lond-fide transdischarge, the trustee s ti J than transactions relating actions by the debtor for value other ^an tram^^ ^ bank_ to freehold property, appeal trustee may, subject to rapt is a

  • SXhSge l^tt dnto of td offlee

certain provisions for the d nrofits of the benefice ; and apply for the sequestration of the proWs ^ etc.( the where he is in receipt 3of a, sa y> ^be trustee, but court may order any P ^ thereo V^ sucll order rst^VLTaKitli the consent of the chief of the department concern claims of Creditors and Dividends. In the distribution of ^be debt,Jb®/^fjSdiOTjTlthoigh not entitled to priority over others Thus tl of the trustee, entitled to a preference out ofontbe funds i effectg of tbe debtor can distrain for unpaid rents g°° where the distraint is remaining on the landlord P ’ j anbrllptcy this right is levied after the commencement of the P y adjudicalimited by the Act of 1890 to six months ren^dae Mto ^ ^ tion, the remainder of "^“ “s Tad “ater companies have

S “clmltted'b? the dX^fe^ninraXSte ^.'^"bSrpt^^^^ oi of trust in any

Sr&Seordai»df,he been adjudged bank-