Then, on proof of any of such facts, the Court may either (a) refuse the discharge; or (b) suspend the discharge for a period of not less than two years ; or (c) suspend the discharge until a dividend of not less than ten shillings in the pound has been paid to the creditors ; or (d) require the bankrupt, as a condition of his discharge, to consent to judgment being entered against him by the official receiver or trustee for any balance, or part of any balance, of the debts provable under the bankruptcy which is not satisfied at the date of the discharge, such balance or part thereof to be paid out of the future earnings or after-acquired property of the bankrupt, in such manner and subject to such conditions as the Court may direct; but execution will not be issued on the judgment without leave of the Court, which leave may be given on proof that the bankrupt has since his discharge acquired property or income available towards payment of his debts. But if at any time after the expiration of two years from the date of any order so made, the bankrupt satisfies the Court that there is no reasonable probability of his being in a position to comply with the terms of the order, the Court may modify the order in such manner and upon such conditions as it may think fit.
Punishment of debtor.—If, after a bankruptcy notice has been issued or a bankruptcy petition presented, it appears that the debtor has absconded, or is about to abscond, he may be arrested and his papers and goods seized. So also, if after the presentation of a petition he is about to remove his goods, or conceal or destroy his goods or documents ; or removes anyegoods in his possession above the value of ,E5 without leave ; or fails to attend any examination without good cause. If it appears that the debtor has been guilty of any misdemeanour in bankruptcy, the Court may commit him for trial ; and if he has been guilty of any criminal offence he may be prosecuted, even though he has obtained his discharge, or a composition or scheme has been proposed or accepted. Though the official receiver does not ask for a
prosecution, the Court must nevertheless consider whether a prosecution is necessary.
It is a punishable felony for any person, in respect to whose estate a receiving order has been made, after, or within four months before the presentation of a petition, with intent to defraud, to quit or attempt to quit England, and take with him property to the amount of at least £20, which ought to be divided among his creditors. There are a number of other offences constituted by the Debtors Act, and relating mainly to bankrupts, the commission of any of which is a criminal offence.
Generally, and for further information on this subject and matters incidental thereto, reference should be made in addition to articles mentioned above, to those on FRAUDULENT CONVEYANCES; UNDUE PRE FERENCE; and with regard to bankruptcies in which the property of the debtor does not exceed £300, to SMALL BANKRUPTCIES. It will now be sufficient to conclude with a few short points. There must be an indebtedness of £50 at the least to support a bankruptcy petition. Proceedings in bankruptcy will not be permitted for the inequitable and collateral purpose of extortion or exercising pressure over a debtor ; nor in any case where they constitute an abuse of the process of the Court. An action for damages is maintainable against one who maliciously and falsely takes bankruptcy proceedings. Bankruptcy usually terminates the contracts of agency, master, and apprentice, and partnership ; but not those of hiring, purchase, and sale ; nor does it abate an action, or revoke a submission to arbitration.