BANKRUPTS WITHOUT ASSETS.

Globe, Volume XXII, Issue 1854, 31 January 1880, Page 3

BANKRUPTS WITHOUT ASSETS.

In refusing a discharge to an Auckland bankrupt recently. Judge Gillies said :—I have something to say in regard to this case, and in regard to such oases generally, I see that the bankrupt, in the statement of his assets has nothing—that his estate is nil. My attention has been called to this circumstance, and I have carefully considered the provisions of the Act in respect of such fact, where it occurs. lam clearly of opinion that the Act was never intended to apply where the debtor has no assets. The whole machinery of the Act is intended to provide not only for the relief of the debtor, but for the equal division of his estate among his creditors. Where the debtor has no estate to be divided it is a solemn farce to have trustees appointed, meetings of creditors where there is nothing to be divided. There is no reason for an individual in such a position coming to this Court for relief. His person is protected by law ; be cannot be touched by any of his creditors. He has no estate that can be touched, and no one creditor can have advantage over another, because there is nothing to be got out of the estate. I therefore see no reason why a person of this description should come before the Court for relief. The law has protected him by preventing him being imprisoned, and he has protected himself by having no assets. In such circumstances, I am of opinion that the Act does not apply. I shall not in this case, or in the other cases of the kind that may be brought before me to-day, act on this opinion. I shall grant the discharge where it is proper, in accordance with previous practice—which practice, however, I think has been erroneous. But I am very clear that the opinion I have just expressed is the correct one, and I may intimate that in future I will act on the principle set forth in it, where there are no assets in a bankrupt estate. I shall hold that the Act was never intended for such cases, and I shall not grant any discharge.