DISCHARGING BANKRUPTS.

New Zealand Herald, Volume LXI, Issue 18771, 26 July 1924, Page 8

DISCHARGING BANKRUPTS.

The cautious attitude adopted by >'; the Court,' the officialassignee and creditors toward bankrupts applying . for; discharge is in the public interest. Slackness in such a matter • would have pernicious results. There must be provision in law for grant- > i ing relief to debtors hopelessly insolvent. Without it, commercial chaos would be prevalent. The riglit to engage in business is one that may be exercised by every citizen— J until experience shows that it must be forfeited because of individual j incompetence or criminal intent. j Sometimes, however, misfortune overtakes those possessed of comi mercial aptitude and probity. To ■ j them the law shows a justifiable j clemency! granting them relief from 1 overwhelming liabilities, -on cpnj sideration that.the utmost they can j pay is forthcoming. It exercises also j the right of declaring bankrupt all j whose insolvency is an embarrassment to others. In this way the world of-business is kept tolerably free fi-om , the accumulation of unpaid debts that otherwise would work confusion and havoc. By this writing off of debts that are without likelihood of settlement the inevitable fringe of unmet liabilities is :. kept at a minimum. Because such a'provision is liable to abuse, however, a safeguard'is. rightly, supplied by making a bankrupt's final dis- : charge from his liabilities a matter of judicialinquiry on petition • and : it is at this point that all concerned are under: special obhgation to the community. .Creditors, however sympathetic they may be with, bankrupt debtors, should not lightly be ; parties to their discharge. The judges: and the official assignee are in a special way guardians of the public weal. If discharge be made easy, or if inquiry be merely formal, encouragement is given to - reckless dealings and the of commercial i morality is lowered! When there' is ! evident reluctance fo grant discharge [ or to consent to it, saVe in instances ■ above;.. •suspicion, the thanks of the community are due. The duty of - refusal of discharge is. often uni pleasant, but its doing, as in some ! cases recently heard, is a matter of i public benefit and satisfaction.