Bankruptcy Legislation.

Oamaru Mail, Volume XIX, Issue 6046, 11 September 1894, Page 1

Bankruptcy Legislation.

(by telegraph.) (prom our own correspondent). Wellington, September 10. The Bankruptcy Act Amendment Bill, introduced by Mr Cadman, is designed to protect small creditors against the action of bankrupts, who frequently make private assignments to a large creditor. It proposes to provide that any deed of assignment shall be void unless made in favor of at least two trustees, who are also creditors, and that provisions be made that every claim not exceeding L 5, as well as every debt for wages, be paid in full. The deed of assignment must be registered under the Chattels Transfer Act, and within seven days of \ its execution the trustees must advertise the fact and call a meeting of creditors. Every deed of assignment will be liable to a L 5 stamp duty, and must be dated on the day on which it is executed. Every debtor making such a deed shall submit to public examination before the Court, , as if he were a bankrupt. Imprisonment | for not more than two years, with or without hard labor, is provided as a , penalty for any offence against this Act. Sections 137 and 141 to 147 of the Bankruptcy Act are made to apply to debtors executing assignments. [These clauses are those dealing with penal offences, summary trial for misdemeanors, prosecutions, and payment of expenses of prosecutions under the Act by the Crown.] The Bill also clears up the obscure provision of the Bankruptcy Act regarding the status of deputy assignees, who are - empowered to act as though they were l official assignees. The' costs of petition- ' ing debtors under the Bankruptcy Act [ are to be limited to the costs now paid L before bankruptcy. Discharge shall not - release a bankrupt from any debts due to s the Crown. The Bill will practically put r an end to the system of private assigni ments, should it become law.