THE BANKRUPTCY ACT.

Globe, Volume XXIV, Issue 2575, 8 July 1882, Page 4

THE BANKRUPTCY ACT.

TBt Tklegraph.l WELLINGTON, July 7. 7ha joint committee on bankruptcy reported to day. They condemn ruthless trading and the indiscriminate oi edit which prevails. It is recommended that instead of creditors prosecuting fraudulent bankrupts by leave of the Court, ns advised by one Judge (which the committee deem almost prohibitive), that the Court should deal summarily with ceriaia cases 7ha suspension of bankrupts’ discharges being often mere farces, a special recommendation is made on the subject. The committee think it nlmost impossible to prepare a .Bill that will meot tlie views of creditors generally, but believe that much may be done toward pro tectiag the assets of an insolvent person and promising a spoedy realization at less cost, and alto checking fraud. Tho committee recommend that powers be vested in a Bankruptcy Judge to try all cases as under the present English Act; that an official assignee be appointed, assisted by tho creditors as tupervisors; that t e Judge have power to grant a discharge on paying a dividend fixed by the Court, or, in case of fraud, to order imprisonment with or without hard labor a term not exceeding twelve months. Possession taken nnd r a writ and exeentiou to be an act of bankruptcy, and the estate at once would vest in the official assignee ; expenses incurred by the execution creditor to bo the first charge on the estate; no costa allowed as' between solicitor and client; no solicitor or counsel to take Les from a bankrupt .beyond the legal Court fees, &c,; a scale ot fees to be fixed, and the judge to order in special cases the official assignee to open a separate account at the Bank for tbe cash estate in his hands. Present “ conditional acta of bankruptcy” to bo made 11 active acta * ; bankruptcy to relate back to any act of bankruptcy within six months ; bills of sale to be void as against creditors if made within three months of bankruptcy ; assignment by a debtor for the benefit of one or more creditors to be an act of bankruptcy ; arrangements by dee 1 to bo repealed entirely ; tho official assignee’s fee to be 5 per cent, up to £IOOO, and above that 2 } up to £2OOO, and abovo that l-per cent.; supervisors not to be paid_ more than 21 per cent. ; in all bankruptcies the costs are not to exceed £lO beyond the Court fees ; costs of solicitor to aseignoe not to exceed £2O, but tbe Judge to order extra costs if necessary ; solicitors not to exercise a lien on deeds in possession belonging to the bankrupt for any amount beyond the cost of preparing snob deeds. There are numerous other suggestions as to details, and verbal amendments ot existing Acta.