BANKRUPT MAY MEET CREDITORS IN SECRECY.

Star (Christchurch), Issue 18208, 15 July 1927, Page 9

BANKRUPT MAY MEET CREDITORS IN SECRECY.

SUPPRESSION OF NEWS PROPOSED IN BILL BEFORE PARLIAMENT. (Special to the “Star”) WELLINGTON, July 14. The long expected Amendment cf the Bankruptcy Act has been circulated by the Minister of Justice, and if passed, will operate from January 1. In addition to a large number of clauses providing for improvements in procedure, there is a definite alteration in the order of preference on distribution of. assets. A landlord’s preferential claim for rent is reduced from six to three months prior to the bankruptcy, while wages are placed ahead of rent, the order of preference now being: Costs, assignee’s charges, wages, rent. A bankrupt is permitted to select furniture up to £SO in value. A lengthy clause provides for the protection of persons accepting an assignment of moneys payable to dairy farmers in respect of sales of milk. Such a contract in respect to which moneys have been advanced to bankrupt is to be valid in law and cannot be set aside by preference, except to the extent of advances which may have been made before the execution of the contract. Another important clause prohibits the publication of any report of the examination of bankrupt before the Official Assignee or Magistrate in respect to bankrupt's property, save by special consent of the Court or Assignee. The penalty for a breach of this section is £IOO on summary conviction. The Minister of Justice is to gazette annually a list of undischarged bankrupts. Other clauses include provisional protection of leases against forfeiture on commission by the tenant of an act of bankruptcy, a strengthening of the section enabling the Assignee to disclaim onerous property and of bankrupt’s giving fraudulent prefer ence. and it is provided that where a debtor is absent from New Zealand a petition in bankruptcy can be filed in the district in which the petitioning creditor resides.