A NON-TRADING BANKRUPT.

Evening Post, Volume XXI, Issue 23, 29 January 1881, Page 2

A NON-TRADING BANKRUPT.

SEVERE REMARKS OF THE CHIEF JUSTICE. His Honor the Chief Justice held a sitting in Bankruptcy at 4 o'clock yesterday afternoon, for the purpose of hearing an adjourned application for the discharge of Mr. J. C. R. Isherwood. Mr. Edwards appeared for the bankrupt, and Mr. C. A. Baker, trustee, was present to oppose on behalf of the creditors. His Honor said the creditors having passed a resolution against the discharge of the debtor, he looked upon the latter's application as an appeal from that resolution, and it rested with the debtor to show why that resolution should not be adhered to. Mr. Edwards said he could not appeal against a resolution which he did not understand. His Honor — If you cannot show any reason why it should not be adhered to I must refuse the discharge, that is all. Mr. Edwards said the resolution was improper and unjustifiable, and he could not understand . His Honor — The more unfortunate for you, that is all. Mr. Edwards — I don't know what the creditors think. His Honor — The creditors think he ought to pay his debts, and that if he is not in trade and cannot pay his debts, he is a fraudulent person, and that is what I think. Mr. Edwards thonght everyone should pay his debts, but if the rule had always been applied a good many persons would not have received their discharge. His Honor — Personß in trade are open to consideration, and very often they get more than they deserve ; but pereons not in trade are open to no consideration, unless they can show that at the time they incurred their liabilities they were in a better position than they were at the time they failed. I recollect a person appearing here in Court, and it turned out that he was about to come into considerable property, and he wanted to get his discharge, so that he conld commence with his property quite free of all debts. Mr. Edwards agreed that all persons should pay their debts, bnt argued that no distinction had been made between traders and non-traders. Mr. C. A. Baker, creditors' trustee, said the resolution was passed against the debtor's discharge, because some years since Mr. Isherwood filed in exactly the same position as now. He believed during the whole of that time Mrs. Isherwood had been in receipt of a monthly remittance from home of £20. Mr. Isherwood, in spite of that, failed for £500. He had not made any effort to make a payment to hia creditors — in fact, he had been very off-band with them, and had not placed in the hands of the trustees one penny of those remittances. Mr. Edwards said the money received from Home was not for the debtor, but for the maintenance of his children, and was made under the will of the debtor's father ; and, for his part, he would not allow one farthing of that to go to paying the bankrupt's debts. The money was left on condition that if Mr. Isherwood became bankrupt it should be assigned for the benefit of the children. It was made over to the debtor's wife, and the whole of th« interest went to the children. His Honor — That is very well so far ; but the creditor* say he has no right to incur debts that he cannot pay. He can go on Btill and get hia living, and probably so long as he earns only sufficient to support himself his creditors will not interfere with him ; but I think it very improper for him to come here and try to get his discharge. I think he should go to work, and try to pay his creditors. The discharge was refused.