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 can not prove against the joint estate in com petition 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 208. in the The investigation of a bankrupt's debts is often a matter of great difficulty, owing to the complicated nature of many mer cantile transactions, fraud on the part of the bankrupt, or collusion between him and creditors. Occasionally also many difficult questions arise out of the con tending claims of the various creditors of the bankrupt. act of bankruptcy are proveable, and also ex Not only is all the property to which the bankrupt himself has a right appli cable 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 pos session, 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, utensils in trade, stock, bills of exchange, &c. But interests in property of a real nature are not affected by it. The main difficulty, which has occasioned much litigation as to the cases within this clause, is in deciding whether the bankrupt was or was not the reputed owner of the property at the time of his bankruptcy, which is a question of fact determinable by a jury, according to the circumstances of each particular case. [AGENT.] 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 bank ruptcy, 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 summon the assignees, and require them to produce all books, papers, and documents relating to the bankruptcy; and, on their default without excuse, may cause the assignees to be brought before them, and on their refusing to produce such books, &c., may commit them to prison until they submit to the order of the Court. If an assignee himself become bankrupt, being indebted to the estate of which he is assignee, and if he obtain his 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 oue. 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. 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 credit of the Accountant in Bankruptcy, | subject to such order for keeping an account, or payment, investment, or delivery thereof, as the Lord Chancellor or the Court of Bankruptcy shall direct. Till the choice of the chosen assignees, the official assignee acts as sole assignee of the bankrupt. He is not to interfere with the chosen assignees as to the appointment or removal of the solicitor, or as to directing the sale of the bankrupt's estate. The Lord Chancellor may supply any vacancy in the before-mentioned number of official assignees; and the Court before whom any trader is adjudged bankrupt may order a suitable remuneration to the official assignee out of the bankrupt's estate. Before the passing of 1 & 2 Wm. IV. c. 56, the commissiouers of bankruptcy executed a deed of assignment to the assignees of all the bankrupt's property; but now the whole of the bankrupt's real and personal estate and effects, whether in Great Britain, Ireland, or the colonies, becomes absolutely vested in the assignees by virtue of their appointment; and in case of any new assignee being appointed, it vests in him jointly with those before appointed. This rule of law occasioned much hardship in many instances to persons who had dealt with the bankrupt in ignorance of his having committed an act of back ruptcy, and it has therefore been mate rially qualified by various legis.ative provisions. If nine-tenths in number and value of the creditors agree at two separate meetings of creditors held after the last examination to accept a composition, the fiat may be annulled. Creditors under L are not entitled to vote, but their de are reckoned in value. The bankrupt may be required to take oath that he ta not attempted by any unfair means to ob tain the assent of his creditors. When the bankrupt has duly submitted himself to examination by the comm sioners, and has surrendered up his prom perty and effects, and in other respe conformed to the requisitions of the Bartrupt Act, he becomes qualified to rece.”e a certificate, which operates as a discharg” from all debts due by him when he came a bankrupt, and from all claims and demands made proveable under the st The 6 Geo. IV. c. 16, required that certificate should be signed by four-f in number and value of the creditors w had proved debts above 201.; or after s calendar months from the last exam tion of the bankrupt, either by three-£525 in number and value of such creditors, by nine-tenths in number of such credits But the recent statute of 5 & 6 Vict 122, dispenses with the signatures of the editors, and the court, which is a The copyhold estate of the bankrupt does not pass to the assignees by virtue of their mere appointment, but the commissioners are authorized to convey such property to any person who purchases it. The purchaser is to agree and compound with the lord of the manor wherein it is situate for the fines and services, and the lord shall at the next court grant the pro-thorized to act in the prosecution of 1! perty to the vendee. Property which the bankrupt holds as trustee for others does not pass to his assignees. Whatever beneficial interest the bankrupt may have in property of his wife passes to his assignees; but property which she enjoys as a sole trader in the city of London, or which is settled to her separate use, does not fall within the operation of the bankruptcy. The general rule is, that all the property of a bankrupt vests in his assignees for the benefit of the creditors from the time of the act of bankruptcy; from which it follows that all dispositions made by the bankrupt of his property between that time and the issuing of the fiat are void. fiat in bankruptcy, holds a public sit of which due notice is given to the citor of the bankrupt's assignees, and the London Gazette,' and at such sit: any of the creditors may be heard ags. the certificate being allowed, but court wil! judge for itself of the van!? of such objections as are made, and ester find the bankrupt entitled thereto and allow the same, or refuse or suspend it, tr annex such conditions to its allowance is the justice of the case may require. The certificate will not be a discharge uns the court certifies to the Court of Reve in manner provided by the act, that the conduct of the bankrupt as a trade. both before as well as after his bankruptcy, has been in conformity to the bankrupt laws. The bankrupt is required to make oath in writing that such certificate was obtained fairly and without fraud. The allowance of the certificate must be afterwards confirmed by the Court of Review, against which confirmation any of the creditors may be heard before the court. In certain cases of misconduct by the bankrupt, the bankrupt is not entitled to his certificate; as, if he has lost in any one day 201. by gambling or wagering, or 2007. within one year next preceding his bankruptcy; or if he has, within that period, lost 200l. by any contract for the sale and transfer of government or other stock, where such contract was not to be performed within one week of the contract; or if he have, after bankruptcy or in contemplation of bankruptcy, destroyed, altered, mutilated, or falsified any of his books or papers, or been privy to the making any fraudulent entries in his books; or if he has concealed any part of his property; or if he was privy to the proving of any false debt under the fiat, or afterwards knew the same, without disclosing it to the assignees within one month after such knowledge. A certificate has, in some very extreme cases (as for gaming), been recalled after it has been allowed. But so harsh a measure requires to be very strongly grounded. The effect of the certificate is to exempt the bankrupt from the payment of all debts which might have been proved under the fiat, and of course from arrest. A debt proveable under the fiat, and a debt barred by the certificate, are convertible terms. A written promise to pay a debt is not barred by the certificate; but any contract or security to induce a creditor to forbear opposition is void, and any creditor of a bankrupt who obtains money, goods, &c. to forbear opposition or to consent to the allowance or confirmation of the certificate, is liable to a penalty of treble the amount. If any bankrupt is taken in execution for a debt barred by the certificate, any judge, on his producing his certificate, may order him to be discharged without fee. The bankrupt has, after ob taining his certificate, in certain cases a claim to an allowance out of his estate. If his estate has paid 10s. in the pound to his creditors, he is entitled to five per cent. out of such estate, provided the allowance does not exceed 400l. If the estate pays 12s. 6d. in the pound, he is to be paid 71. 10s. per cent., provided such allowance does not exceed 500l.; and if his estate pays 15s. in the pound, he is to be allowed ten per cent., provided such allowance does not exceed 600l. If, at the expiration of twelve months, the estate does not pay 10s. in the pound, he is only entitled to such allowance as the assignees think fit, not exceeding 3 per cent. and 300l. The above allowances are dependent on the allowance of the certificate, and cannot be claimed previously, and they cannot be paid till the requisite amount of dividend is paid. The bankrupt's right to it, however, is a vested interest even before the dividend, and passes to his representatives in the event of his death. One partner may receive an allowance if a sufficient dividend shall have been paid on his separate estate and on the joint estate, while another partner may not be entitled. The effect of the certificate on a second bankruptcy is very materially curtailed; for if a bankrupt, after having once obtained a certificate, or having compounded with his creditors, or having been discharged under an Insolvent Act, again becomes bankrupt and obtains a certificate, unless his estate pays 15s. in the pound, such second certificate shall only protect his person from arrest; but his future estate and effects shall vest in the assignees under the second commission, who may seize the same. If any surplus of the bankrupt's estate remains after the creditors are paid in full. it of course belongs to the bankrupt, and the assignees are bound, on his request, to declare to the bankrupt in what manner they have disposed of his real and personal estate, and to pay the surpius, if any, to him. The statute 1 & 2 Wm. IV. c. 56, empowered the king, by letters patent under the Great Seal, to establish a court of judicature, to be called the Court of Bankruptcy, consisting of a 'chief judge,' being a sergeant or barrister-at-law of ten years' standing, and three other judges, persons of the same description, and six barristers of seven years' standing, to be called commissioners of the court. The court was constituted a Court of Law and Equity, and, together with every judge and commissioner thereof, was to exereise all the rights and privileges of a Court of Record, as fully as the same are exercised by any of the courts or judges at Westminster Before this court fiats in bankruptcy were to be prosecuted in London, and commissioners under the great seal were no longer to be appointed as formerly in each bankruptcy. The four judges of the court sat as a Court of Review. By 5 & 6 Wm. IV. c. 29, the number of the judges was reduced from four to three. By 5 & 6 Viet. c. 122, several important alterations were made in the Court of Bankruptcy. The Court of Review is formed of one judge (§ 64), instead of three judges; and district courts of bankruptcy are established (§ 46). One of the Vice-Chancellors is now chief judge of the Court of Review. before the commissioners, but not before the Court of Review, in which court suitors appear by counsel. The judge of the court, with consent of the Lord Chancellor, may make rules and orders for regulating the practice and sittings of the court, and the conduct of the officers and practitioners. The court has an official seal with which all proceedings and documents in bankruptcy requiring the seal are sealed. An appeal lies from the commissioners to the Court of Review, and the decision of the Court of Review on the merits as to the proof of the debt is final, unless an appeal is lodged to the Lord Chancellor within one months The Lord Chancellor or the Court of Review may direct an appeal case to be brought before the House of Lords under certain circumstances. The judges and commissioners have the power to take the whole, or any part of the evidence in any case before them, either viva voce on oath, or on affidavit. were Country fiats Before the act 5 & 6 Vict. was passed, the plan of working bankruptcies in the country was as follows:-One hun The Court of Review has superintend- dred and forty separate lists o com ence in all matters of bankruptcy, and missioners (each list consisting of two jurisdiction to hear and determine all barristers and three attorneys) such matters of this description as were appointed by the Lord Chancellor (on formerly brought by petition before the the nomination of the judges), to whom Lord Chancellor, and also all such other fiats were directed for the administra matters as are by the act, or the rules and tion of the bankrupt law, in one hun regulations made in pursuance thereof, dred and thirty-two different cities and specially referred to this court. The pro- towns, in various parts of the country, ceedings before the court are by way of exclusive of London. petition, motion, or special case, with an are now addressed to one of the seven appeal to the Lord Chancellor in matters district courts of bankruptcy, which are of law or equity; or, on the refusal or established at Birmingham, Bristol, Exe admission of evidence, such appeal to be ter, Leeds, Liverpool, Manchester, and heard by the Lord Chancellor only, and Newcastle. The affairs of a bankrupt at not by any other judge of the Court of Norwich are administered in London; a Chancery. The court may direct issues bankruptcy in the southern part of Not as to questions of fact to be tried before tinghamshire is within the jurisdiction of any judge of the court, or before a judge the Birmingham court, and if the bank of assize, and a jury to be summoned rupt has lived in the northern part of under the order of the court. The costs the county of Nottingham, it is worked in the Court of Review are in the discre- at Leeds. Each court has thus juristion of the court, and are to be taxed by diction in a district of from forty to up one of the Masters of the Court of Chan-wards of eighty miles in length. The cery. All attorneys and solicitors of the courts at Westminster may be admitted and enrolled in the Court of Bankruptcy without fee, and may appear and plead Privy Council is empowered to select the seat of the courts, and to fix and alter their jurisdiction. The act limits the number of commissioners for the district |