BANKRUPTCY. 



computed from the time of the surren- 

 der. 



BANKRUPTCY, proceedings of, under 

 a commission. The Lord Chancellor is 

 empowered to issue a commission of bank- 

 rupt, and is bound to grant it as a matter 

 of right. By 5 Geo. II. c. 30, no commis- 

 sion can issue, unless upon the petition of 

 a single creditor, to whom the bankrupt 

 owes a debt, which shall amount to loOJ, 

 the debt of two or more, being partners, 

 shall amount to 1501. and of three or more 

 to 2001. 



If the debt against the bankrupt amount 

 to the sum required, it is not material, 

 though the creditor should have acquired 

 it for less. 



If a creditor to the full amount, before 

 an act of bankruptcy committed, receive, 

 after notice of the bankruptcy, a part of 

 his debt, such payment, being illegal, can- 

 not be retained, and the original debt re- 

 mains in force, and will support a com- 

 mission. 



The debt must be a legal, and not an 

 equitable one, and if the legal demand be 

 not in its nature assignable, the assignee 

 cannot be the petitioning creditor, as the 

 assignee of a bond. 



If the creditor, for a debt at law, have 

 the body of his debtor in execution, he 

 cannot at the same time sue out a com- 

 mission upon it; that being, in point of 

 law, a satisfaction for the debt. 



Of opening the commission. When the 

 commissioners have received procf of the 

 petitioning creditor's debt, the trading, 

 and act of bankruptcy, they declare and 

 adjudge the party a bankrupt. They are 

 authorised to issue a warrant, under their 

 hands and seals, for the seizure of all the 

 bankrupt's effects, books, or writings, and 

 for that purpose to enter the house, or 

 any other place belonging to the bank- 

 rupt. 



Such debts only can be proved under a 

 commission, as were either debts cer- 

 tainly payable, and which existed at the 

 time of the bankruptcy,or which,although 

 originally contingent, yet, from the con- 

 tingency happening before the bankrupt- 

 cy, were become absolute. In every case 

 the amount of the debt must be precisely 

 ascertained. 



Time and method of proving. Credi- 

 tors were formerly precluded from prov- 

 ing after four months, but the court now, 

 except in cases of gross negligence, al- 

 lows them to come in at any time, whilst 

 any thing remains to be disposed of. The 

 usual proof required, is the oath of the 

 litor himself, either in person, or by 



credito 



affidavit, if he live remote from the place 

 of meeting, or reside in foreign parts. 5 

 Geo. II. 



Corporations, or companies, are gene- 

 rally admitted to prove by a treasurer, 

 clerk, or other officer duly authorized. 



Of the assignees. Immediately after 

 declaration of the bankruptcy, the com- 

 missioners are to appoint a time and place 

 for the creditors to meet and choose as- 

 signees ; and are directed to assign the 

 bankrupt's estates and effects to such per- 

 sons as shall be chosen by the major part 

 in value. 



The powers and duties of assignees arc 

 principally those of collecting the bank- 

 rupt's property, reducing the whole into 

 ready money, and making distribution as 

 early as possible. One assignee is not 

 answerable for the neglect of another. 

 Assignees, if they act improperly, are not 

 only liable at law to the creditors for a 

 breach of trust, but may be removed on 

 account of misbehaviour, 8tc. by petition- 

 ing the Lord Chancellor. Upon the re- 

 moval of an assignee, he is directed to 

 join with the remaining one in assignment 

 to the latter and new assignee. 



Provisions for wife, children, &c. By 

 the statute of Elizabeth, the commission- 

 ers may assign any lands, &c. that the 

 bankrupt shall have purchased jointly 

 with his wife, and the assignment shall be 

 effectual, against the bankrupt, his wife, 

 or children ; but this shall not extend to 

 conveyances made before the bankruptcy 

 bona fide, and not to the use of the bank- 

 rupt himself only, or his heirs, and where 

 the party to the conveyance are not privy 

 to the fraudulent purposes to deceive the 

 creditors. 



Examination of the bankrupt. By the 

 5th Geo. II. the commissioners are em- 

 powered to examine the bankrupt, and 

 all others, as well by parole, as by inter- 

 rogations in writing. The said statute 

 requires the bankrupt to discover all his 

 estate and effects, and how, and to whom, 

 and in what manner, on what considera- 

 tion, and at what time, he has disposed of 

 them ; and all books or papers, and wri- 

 tings relative thereto, of which he was 

 possessed or interested, or whereby he or 

 his family may expect any profit, ?dvan- 

 tage, &c. and on such examination he shall 

 deliver up to the commissioners all his 

 effects,(exceptthe necessary wearing ap- 

 parel of himself, his wife, and children,) 

 and all books, papers, and writings, rela- 

 ting thereto. 



With respect to his privileges from ar- 

 rest. By the above act, the bankrupt 



