BANKRUPTCY REFORM.

Wairarapa Daily Times, Volume 3, Issue 748, 21 April 1881, Page 2

BANKRUPTCY REFORM.

The_ last mail brought particulars of three influential memorials which have recently been made to the English Government on the subject of bankruptcy reform. One of these is from the Council of Incorporated Law Society, and contains the following suggestions:—(l) That when e person becomes insolvent there should be only one mode of proceeding, viz., by bankruptcy. (2) That proceedings should be Commenced either by the debtor himself,, or by a creditor by petition verified by affidavits; and that on the filing of such petition, all proceedings against the debtor should be stayed until the Court shall otherwise direct, (3) That a receiver appointed by the Court should take possession of the estate, until the apponitment of a trustee.- (4) That trustees should give security, at the discretion of the Court. (5) That trustees should receive remuneration only by order of the Court. (6) That trustees bo required to render accounts to a proper officer of the Court, and pay their balances into Court, (as now done by receivers in Chancery) under a penalty for neglect. (7) That any creditor should be able, at his own expense, to summon any debtor before the Court, to examine him on oath, (8) That holders of bills drawn or endorsed by the bankrupt, ought to be treated for the purpose of voting as secured creditors. (9) That the bankrupt should not 1)6 released from liability until his discharge is granted; and that suoh discharge should not be granted until at least 5s in the £ has been paid, unless misfortune or accident be proved; and not granted at all in cases of overtrading, reckless speculation, fradulent conduot, or when books have not been kept, or the estate has not been carefully surrendered. (10) That the clauses of the Bankruptcy Act, 1869, referring to the liquidation and arrangement be repealed: .and no arrangement be allowed, except after fall disclosure and examination of the debtor before the Court. (11) That a special Bankruptcy Judge should be appointed, and that the Court ofßankruptcy should form a division of the High Court of Justice. (12) That in country Cases, any of the proceedings, if required by a creditor,, should be heard by the County Court Judge himself Another of the memorials is signed by all the London private'and joint stock banks, by the colonial and foreign banks, by the discount houses, and the leading city merchants. This contains many suggestions similajUT to those above mentioned, and speofailwV prays the Government to include m the proposed reform, the examination on oath of the debtor and his affairs, the discharge of the debtor by the Court alone, The third is practically identical with the second, and has been signed on behalf of the association of English country bankers. It is said that it is tjie intention of the Government to embody these suggestions in a Bankruptcy' Amendment bill to be brought forward next session. Our New Zealand bankruptcy laws as t% stand, are by.no means satisfactory j a.ncj during the i'eceht monetary panic, creditors have at the conclusion that, if they are':in 'ahy way aM to do so, it is their best policy to lef fllingg V " slide," and put up with •&«;"s&' loss. Were some of- the proposed English reforms introduced, here, getting washed," would not be such a pleasant process, and trustees would have to be & little more careful in their administration of bankrupt estates.