BANKRUPTCY ACT.

Inangahua Times, Volume IX, Issue 1475, 26 November 1884, Page 2

BANKRUPTCY ACT.

# The Bankruptcy Act Amendment Bill cures some of the worst defects in the Act of last year. It makes filing | by a debtor equivalent to adjudication, I and thus saves the delays caused in country districts by the infrequent . sittings of the District Courts. It also i gives the Clerks of District Courts I the same powers as Registrars, which ! will further facilitate proceedings prior to the public examination, which, as well as the proceedings for discharge, '<■ must lie before • the Judge himself. The appointment of deputies, and various other .-natters of detail, will now be within the powers of the Clerks of Court. There are some betterdefined directions for the administration of joint estates. Acts of : bankruptcy are defined to iuclude cases in which a process has been issued against the debtor's property, and a return of n >lla bona has been made; and also where a writ of sale has been directed .against land and i advertised for 21 days. The clauses relating to orders for payment by a bankrupt out of earnings in liquidation of his debts are amended, and full powers are given to the Court to make aud enforce orders after making reasonable allowance for the main- j tenance of the debtor and family. ' ! The order may \<o nude at aiy tim ■■, ! or from time to t.»;ne,. L ).ior to tho clue of the ordttr of discharge. Tins will prevent debtors evading such orders by not coming up for discharge. The ; clause which authorises the Court to ! exercise its summary jurisdiction to imprison the bankrupt for certain offences is amended to read •• public examination" instead of "filial examination," which latter clause was held by Mr Justice Williams in a recent case to b« vague and indefinite. The clauses 85 and 86 of the Act of 1883 relating to leases are struck out, and another substituted to provide for disclaimers on the part of tbe Official Assignee, and for adjusting the rights of parties. Nothing is expressly said in the new clause as to claims on the bankrupt's estate for rout or rates on disclaimed property, and it is to be presumed that the preference givenunder clauses 121 and- 187 of the original Act will remain, though the disclaimed property ii'uy bo mortgaged up to the hilt — which is very questionable policy. The landlord's rights' of distraint are, however, strictly limited to -"apply only o the rent of premises in which .there are goods liable, hut for the bankruptcy, to distress for rent, and he (the landlord) shall tfot be entitled to more than the value* of the goods distrainable as a preferential claim, but may prove for the rent due. This gets rid of the absurd position under which,in a recent ctse (Brown v. The Assignee, in J. Guthrie's, estate i, not only the goods in il^e bankrupt's premises but those in his* private LfouAe, and his book; del its, went to satisfy tlie landlord's claim,! to i the exclusion of other creditors. Dis traint after bankruptcy is now \ forbidden. Wages are now to jbfi j j pt'id in preference not only if the p>r- ]

son claiming was in the employ of the bankrupt at the date of adjudication, but if falling due witniu 60 daya previously. The rules are extended to admit ot further fees and percentages, than th se named in th * tsh \luhs. lueie arc other and minor provisions, but these, in brief, are the most important ; and if they do not render the Act even yet quite perfect, they will at least get rid of some of the worst blotß on it. _