BANKRUPTCY ACT

Hokitika Guardian, 19 July 1927, Page 4

BANKRUPTCY ACT

lAI PORTA NT AAT END A TEXTS. WELLINGTON', July 17. Important amendments to the Bankruptcy Act. IfKIH, which lias been , advocated from time to time, are containing in the Bankruptcy Amendment Bill, which wsis on the Order Paper lor second reading in the House of Represent at i vo.s to-day. It is proposed that petitions in bank ruptey in cases of debtors absent from the Dominion, or whose address is unknown. limy now be filed by a petitioning creditor in tiie place where he usually resides or carries on business, instead of in the centre where the debtor bits resided or been in business.

The powers of, the assignee in the disposal of the assets in a bankrupt's estates are extended l>v allowing him. subject to the authority of the creditors or supervisors of the estate, to dispose of any portion of the property by private contract-. It will Ire fraudulent preference if a debtor, prior to bankruptcy, favours not only a creditor, hut any surety or guarantor of the debt to that creditor.

The publication of reports of the examination of bankrupts is prohibited under an addition to Section 93 of the Act. Some discretion in this respect is, however, vested in the assignee or examining magistrate l , who may give special consent for the publication of the examination proceedings. A breach of this section renders the person concerned liable on summary conviction to a fine of £IOO. Tn the distribution of the assets, wages claims are to have preference over rent, this reversing the order which has obtained hitherto. Landlords preferential claims for rent are also limited to three months prior to the date of adjudication, instead of six months.

Ihe right to select £IOO worth of furniture from his estate, instead of £-o worth, is conferred on a bankrupt. Other clauses in the Bill vary the period under which the assignee may disclaim onerous property, afford protection to persons who accept orders against a dairy farmer's milk cheques, and give provisional protection to leases against forfeiture on the commission by the tenant of an act of bankruptcy. It is proposed that the amendments shall come into force on January Ist. 1928.