three months; and to twelve months if | books, or making false entries, he may be imprisoned for any term not exceeding seven years. After his surrender he may at all times inspect his books and papers, and bring with him two persons to assist him. After he has obtained his certificate, he shall, on demand in writing, attend the assignees to settle any accounts between his estate and any debtor or creditor, or do any act necessary for getting in his estate, being paid 5s. a day by the assignees.

he were out of Europe. An appeal lies from this court to the Lord Chancellor on any matter of law or equity, or the refusal or admission of evidence only. The Lord Chancellor has power, under special circumstances, after any such issue tried, to order another fiat to issue at the instance of another creditor, and to be supported by evidence of any other debt, trading, and act of bankruptcy. If the bankrupt die subsequent to the adjudication of bankruptcy, the commissioners are authorized to proceed as if he were living.

If no cause can be shown for annulling the adjudication, the court is required forthwith to give notice of the adjudication in the London Gazette,' and thereby to appoint two public meetings for the bankrupt to surrender his property and effects, and to conform to the provisions of the bankrupt act. The last of these meetings is to be not less than thirty and not more than sixty days after the publication in the Gazette;' and at the first meeting the choice of the bankrupt's assignees is to take place. The commissioners also sign a summons to the bankrupt to surrender, disobedience to which is punishable by transportation for life, or by imprisonment, with or without hard labour, for any term not exceeding seven years. The bankrupt's examination may be adjourned from time to time during a period not exceeding three months (5 & 6 Vict. c. 122, § 23).

After such surrender the court is authorized to make such allowance to the bankrupt out of his estate, till he has passed his last examination, as shall be necessary for the support of himself and his family. The bankrupt, after the choice of assignees, is bound to declare upon oath all books and papers relating to his estate, to attend the assignees on reasonable notice, and assist them in making out his accounts. If he refuses to make discovery of his estate and effects, or does not deliver up his property, with all books, papers, &c. relating thereto, he is liable to the same punishment as for not surrendering on the summons of the court; and if he is guilty of destroying or falsifying any of his

The bankrupt is protected from arrest in coming to surrender, and also during the sixty days, or any enlarged time (not exceeding three months, 5 & 6 Vict. c. 122, § 23), allowed for finishing his examination.

The commissioners sign a warrant of seizure of the bankrupt's effects, which is directed to a person called the messenger, who is authorized to break open the house, warehouse, doors, trunks, and chests of the bankrupt, and seize his body and property; and in case there is reason to suspect that property of the bankrupt is concealed in any premises not his own, a justice of the peace is authorized to grant a search-warrant to the messenger, who is protected in the execution of it, in the same manner as in cases of stolen property concealed. A bankrupt who conceals goods, &c. to the value of 10l. is guilty of felony, and liable to transportation for life, or imprisonment, with or without hard labour, for any term not exceeding seven years. The messenger is protected from vexatious actions for acts done in the discharge of his duty by the clauses which are usual for the protection of constables and other similar officers in the exercise of their functions; and any obstruction offered to the messenger is a contempt of the Court of Chancery. For expenses incurred in the execution of his office before the choice of assignees, his claim is against the petitioning creditor, and for those subsequently incurred, against the assignees.

One of the most important parts of the proceedings in bankruptcy is the proof of debts. Every person to whom the bankrupt is fairly indebted is entitled to estaAll debts legally blish his debt, and to receive a portion of the bankrupt's estate. due from the bankrupt at the time of the

U

rate debts, the joint creditors may of course prove against the estate of the partner who is bankrupt. But for the mere purposes of assenting to or dissenting from the certificate of the bankrupt and of voting for assignees, joint creditors may prove under a separate fiat, and separate creditors under a joint fiat, without regard to the above rules. If the whole firm become bankrupt, being indebted to an individual partner, such partner cannot prove against the joint estate in competition with the joint creditors; for as they are his own creditors also, he has no right to withdraw any part of the funds available for the payment of their debts; nor can those partners of a firm who remain solvent prove against the separate estate of a member of that firm in competition with his separate creditors, unless the joint creditors be first paid 20s. in the

The investigation of a bankrupt's debts is often a matter of great difficulty, owing to the complicated nature of many mercantile transactions, fraud on the part of the bankrupt, or collusion between him and creditors. Occasionally also many difficult questions arise out of the contending claims of the various creditors of the bankrupt.

act of bankruptcy are proveable, and also
all debts contracted before the issuing of
the fiat, though subsequent to the act of
bankruptcy; provided the creditor, at the
time of the debt being contracted, had
no knowledge of the act of bankruptcy.
There are also provisions in favour of
those to whom a debt may become due
after the issuing of the fiat, upon some
contingency provided for by agreement
before the trader was made a bankrupt,
such as policies of insurance for instance.
And all creditors having claims upon the
bankrupt which depend on any contin-
gency may, on application to the com-
missioners, have a value set upon the
contingent claim, and be admitted to
prove for the debt thus ascertained. A
bankrupt who within three months of
his bankruptcy obtains goods on credit
under false pretences, or removes or con-
ceals goods so obtained, is guilty of a mis-pound and interest.
demeanour, and on conviction is liable
to imprisonment, with or without hard
labour, for a term not exceeding two
years. With respect to interest on debts,
the general rule is, that no interest is
provable unless interest was reserved by
contract, either express, or arising by
implication from the usage of trade, or
other circumstances attending the con-
tracting of the debt: where interest is
allowed, it is calculated to the date of the
fiat. By a special provision, bills of ex-
change and promissory notes are ex-
pressly excepted from the general rule,
and the holders of those instruments are
entitled to prove for interest down to
the date of the fiat, though interest be
not reserved by the instrument. With
respect to proof of debts against the
partners of a firm, the general rules are
1. that as a creditor of the whole firm
may, if he please, sue out a separate fiat
against any single partner or any number
of partners, he may prove his debt in the
same manner; 2. a joint creditor of
the whole firm may prove against the
separate estate of any one partner who is
bankrupt, provided there is no partner
who is solvent; but if there is a partner
who is solvent, then the joint creditors
cannot come into competition with the
separate creditors of the partner who is
bankrupt; 3. where there are no sepa-

Not only is all the property to which the bankrupt himself has a right applicable towards the payment of his creditors, but there are instances in which effects of other parties in his custody, which could not have been retained by the bankrupt had he not become bankrupt, will vest in his assignees under the fiat. The principal enactment on this subject, 6 Geo. IV. c. 16, § 72, was intended to apply to cases where persons allowed the use of their property to a failing trader, who is thereby enabled to assume a deceitful appearance of wealth, and obtain credit with the world. Accordingly, if any bankrupt, by the permission and consent of the owner, shall have in his possession, order, or disposition any goods or chattels whereof he was reputed owner, or whereof he had taken on himself the sale or disposition as owner at the time of his bankruptcy, the Court may order the same to be sold for the benefit of the creditors. The provision applies only to

goods and chattels, such as ships, furniture, | summon the assignees, and require them utensils in trade, stock, bills of exchange, to produce all books, papers, and docu&c. But interests in property of a real ments relating to the bankruptcy; and, nature are not affected by it. The main on their default without excuse, may difficulty, which has occasioned much liti- cause the assignees to be brought before gation as to the cases within this clause, them, and on their refusing to produce is in deciding whether the bankrupt was such books, &c., may commit them to or was not the reputed owner of the pro- prison until they submit to the order of perty at the time of his bankruptcy, which the Court. If an assignee himself become is a question of fact determinable by a bankrupt, being indebted to the estate of jury, according to the circumstances of which he is assignee, and if he obtain his each particular case. [AGENT.] certificate, the certificate will only have the effect of freeing his person from imprisonment; but his future property and effects remain liable for his debts as assignee. The Court of Chancery has a general jurisdiction over assignees in matters relating to the bankruptcy, and will compel the performance of their duties if neglected. One of their duties is to sell the bankrupt's property, at which sale they cannot themselves in general become purchasers by reason of their fiduciary character. The assignees are entitled to be reimbursed all necessary expenses; and if an accountant is indispensable to assist them, they are entitled to employ one. They have the right of nominating the solicitor to the bankruptcy, and of regulating his continuance or removal; and they may, with the approbation of the commissioners, appoint the bankrupt himself to manage the estate, or carry on the trade on behalf of the creditors, or to aid them in any other matter. The Court of Review has power to remove an assignee, either on his own application or on that of a creditor.

There are certain classes of creditors which the legislature has peculiarly privileged. The Court is authorized to order that the clerks and servants of the bankrupt (which includes travellers and servants working by the piece) shall receive their wages and salary, for not exceeding three months, and not exceeding 301. out of the estate of the bankrupt; and they are at liberty to prove for the excess. The Court may also order wages, not exceeding forty shillings in amount, to be paid to any labourer or workman to whom the bankrupt is indebted, and they may also prove for the remainder. Under 6 Geo. IV.six months' wages could be paid. In order to provide for the due distribution of the bankrupt's property among those who have proved his debts, the bankrupt's estate is vested in assignees, who are charged with the collection and distribution of it. They are either, first, chosen assignees, or, secondly, official assignees, who are permanent officers of the Court of Bankruptcy.

The chosen assignees are chosen by the major part, in value, of the creditors who have proved debts to the amount of 101., subject to a power of rejection on the part of the Court if they are deemed unfit for the office. The first duty of the assignees is to ascertain the validity of the bankruptcy, for which purpose the petitioning creditor is bound to furnish them with all the information in his power. If they ascertain it to be defective, they may apply to the Lord Chancellor to supersede it, which is the only mode in which they can dispute the validity of the fiat. The assignees are required to keep an account of all receipts and payments on account of the bankrupt, which every creditor may inspect. The Court may at all times

The official assignees are merchants, brokers, or accountants, or persons who are or have been engaged in trade, not exceeding thirty in number, who are appointed by the Lord Chancellor to act as official assignees in all bankruptcies. One of them acts with the chosen assignees in every such bankruptcy, giving security for his conduct. The personal estate of the bankrupt, and the rents and proceeds of his real estate, are received by the official assignee, where not otherwise directed by the Court of Bankruptcy or the commissioners; and all stock, moneys, and securities of the bankrupt must be forthwith transferred and paid by the official assignee into the Bank of England, to the