THE Inangahua Times. PUBLISHED TRI-WEEKLY. WEDNESDAY SEPTEMBER 6, 1882.

Inangahua Times, Volume VII, Issue 1126, 6 September 1882, Page 2

THE Inangahua Times. PUBLISHED TRI- WEEKLY. WEDNESDAY SEPTEMBER 6, 1882.

We recently stated that the proposed Bankruptcy Bill, introduced by the Colonial Secretary, had been abandoned this session, and that it would be circulated during the recess in oi'der to obtain from business men, and commercial associations of all kinds, expressions of opinion and suggestions for improvements if possible, before the measure was again submitted to Parliament. As few of our readers, however, are likely to obtain copies, we give a digest of the principal provisions. Courts of Bankruptcy are to be established, and they are to be, coterminous with existing judicial districts, but each Court is to have independent jurisdiction. An important 'change is proposed, in the appointment by the Governor of- official assignees and officers, of the Courts, who will be r'equjred to &^3%e3PfS> &™l Jtfho ,ins£acl- gf.^l^^^.^j^ge aji£j iorftrageous-%xpenses*th|y choose, as tit \ present, are to be paid by fixed salaries, j .out of moneys regularly voted by i Parliament. The official assignee is to hold an equal status with receivers under the Supreme Court. He is in all cases to consult the wishes of the creditors with respect to dealing with the, bankrupt's property that he may have in charge, and is to be endowed with power to call meetings to ascertain what their views may be. No creditor of the estate, or bankrupt, is to be eligible to act as ar official assignee, and under no circumstances is the assignee to receive more than the official salaiy. The accounts of all assignees are to be audited by Public Auditors where practicable. " Acts of Bankruptcy" comprise filing a petition in bankruptcy or a declaration of insolvency ; assigning property for the benefit of one or more creditors ; doing any of the following things by a debtor to defeat or delay creditors, viz : — fraudulently disposing of property ; leaving the Colony or remaining out of the Colony, or absenting himself from his usual place of residence or business, or keeping within his house to avoid process, or leaving any execution unsatisfied for more than three days. The jurisdiction of the Court is to extend o¥wr preceding twelvemonths. Settlements of property on wife or children, within three years of bankruptcy, to be void, unless made before marriage, or for " valuable consideration." But if the bankrupt can show that he was solvent at the time of making the settlement the Com*t has power to declare it good. Fraudulent preference- ami- preferential payments to creditors are to be void, as well as bills of sale executed within three months of tho bankruptcy. Ijh order to purchase the book-debts in Mis own estate the debtor must have the special leave of the Court No official assignee is to hold more than £20 belonging to any estate for more than ten clays, and a breach of this proviso is visited with severe penalties. A first dividend is to be ' declared within three months, or a meeting of creditors called at which the delay is to be explained, and all estates, large or small, are to be wound up within 18 months. The huge costs hitherto permitted to lawyers are to be curtailed, at least only such as are allowed by the Judge of the Court can be charged. No costs are to l>e allowed .as between solicitor and client, and solicitors are to have no lien on deeds or other documents, and no costs at all are to be allowed for frivolous or unnecessary applications to Court. The f<« for iiling a bankruptcy petition by debtor or creditor is to be £2. The fees on property realised by the official assignee is f) per cent up to £1000, 2i per cent up to £'i!0C0, and 1 per cent

beyond that amount. Supervisors may be appointed by creditors who may b« allowed 2.} pet* ceiit'on realised property up to £1000, 2 per cent to £2000, and 1 per cent above that sum. The costs to solicitors for assignees are not to exceed £20, or to bankrupt's solicitor more than £10. Five guineas may be charged for preparing a deed of composition up to .£SOO, or ten guineas in estates exceeding that sum. The costs in trials in connection with estates are to be 5 per cent on amounts rtcovered up to £200, 2^ per cent beyond that amount. If the claim exceeds £500 then the charge is to be 5 per cent on the first £250 recovered, 2i per cent on the next £250, and \ per cent beyond that. The above is a very brief resume of this bill, containing fts it does 240 clauses, ami over 50 pages, but it gives at least an outline of the leading features. In its passage through the Legislature, it will, no doubt, be greatly altered in many probably material respects, but it will be a year before it is finally dealt with.