THE BANKRUPTCY ACT. A WARNING TO DEBTORS.

Evening Post, Volume XLVII, Issue 83, 9 April 1894, Page 2

THE BANKRUPTCY ACT. A WARNING TO DEBTORS.

An unusual case came before tho Bankruptcy Court this morning, when John Windloy, formerly employed as a gardener in Petone, appeared to show cause why he should not be punished, under section 152 of tbo Bankruptcy Act, for failing to apply for his discharge within four months of his bankrnptoy. The Official Assigneo said that although he had twice notified tho debtor, the latter had not moved for his discharge. The bankrupt explained that he had not applied because he hod been told that the expenses would be very great. He wa* very poor, and could not Bee Mb way to apply for his discharge. At present he was a hop-beer manufacturer at Petone, and was making about £1 a week only. Tho Official Assignee explained that the present was a test oase, to show debtors that they could be compelled to apply for their discharge. There was power under the statute to remit all oharges in cases where the debtors were unable to pay. In the present instance 1 the dobtor had not come near him at all. His Hononr Baid he would not make an order provided the debtor undertook to apply for his discharge at tbe noxt pitting. Debtor promised to make tbe Application when the Court next sat. The following is the section under which Windley was summoned this morning : — " A bankrupt shall apply for his discharge within four months of the date of his adjudication. If ho shall neglect to do so. the Official Assignee may, by notice in writing, require biui to apply for his disobarge, and if ho shall for ten days thereafter fail to take allnece'eary steps for this pnrpose, the Assignee may apply to the Judge to have the bankrupt committed for contempt of Court. If ths bankrupt shall satisfy tho Assignee that he (the bankrnpt) is unable to pay tbe Court fees and outlax incidental to bis application for discharge, euoh fees shall, on production of a certificate by the Assignee to that effect, be remitted, and the Assignee shall take all necessary stops and pay out of the es l ate all other outlay in respect of the application for the bankrupt's discharge."