The bankrupt will obtain a warrant of liberation if he have been imprisoned, or otherwise of protection from imprison ment, at the commencement of the process, if there be no valid objection to it. The court of session's warrant is effectual to pro tect him from imprisonment in all parts of the British dominions. Four-fifths in value of the creditors may award him an allowance until the payment of the second dividend. It is not in any way measured by the amount of the dividend, but is re stricted in all cases to a sum within Si. 3s. per week. There are provisions for the examination of the bankrupt, his family, servants, &c., and in general for enforcing a discovery of the estate, bearing a gene ral resemblance to the provisions for the like purposes in England. The bank rupt's release from the debts which may be ranked or proved on his estate is ac complished by a judicial discharge. If all the creditors who have qualified con cur, he may petition for it immediately after the creditors have held the statutary meeting which follows his examination. Eight months after the date of the seques tration he may petition for it if a majo city in number and four-fifths in value concur. He makes an affidavit that he has made a fair surrender, and after cer tain formalities tending to publicity, and the elicitation of reasons of objection, he receives his discharge. It is granted either by the sheriff or the lord ordinary of the court of session, and in the former case it is confirmed by the lord ordinary, and registered in the bill chamber of the court of session.
Ranking is called in England the proof of debts, is called in Scotland " Ranking." The trustee is the judge of each claim in the first in stance, his decision being subject to ju dicial review. Creditors produce with their claims, affidavits and vouchers. The peculiar character of the law of real pro perty, and the securities and other rights to whirl it gives rise, operate some dis tinctions between the ranking in a seques tration in Scotland and proof in England. The most important particular, however, in which the Scottish system differs from the English, is in the absence in the for mer of the distinction between partnership and individual estates which character ises the latter, the creditors of a company in Scotland being entitled to rank in the bankrupt estates of the individual part ners, the claim on the company estate being in each case first valued and de ducted. The provisions of 6 Geo. IV. c. 16, in England, regarding contingent and annuity creditors, have been incorporated in the Scottish sequestration act, but it was an old established practice in Scot land for the claims of such creditors to be equitably adjusted. A creditor, to share in a dividend, must lodge his claim at least two mouths before the time when it is payable. The first dividend is pay able on the first lawful day after the ex piry of eight months from the date of the sequestration, and the others succes sively at intervals of four months. The trustee and commissioners may with the sanction of the creditors summarily dispose of whatever portion of the estate may be in existence twelve months after the date of the sequestration. The un claimed dividends are lodged in bank, at the direction of the bill chamber clerk, who preserves entries of them in a book called the "Register of Unclaimed Dividends." When the trustee has ful filled his functions under the act, he calls a meeting of the creditors, that they may record their opinion of his conduct, and on their judgment he may apply to the court for a discharge, parties being heard for their interest: on his being judicially discharged, the sequestration is at an end. The sequestration act contains provisions for suspending the judicial realization and distribution of the estate by a composi tion contract. These provisions are
nearly in the same terms with those for the same purpose in the English statute, which were originally adopted from the Scottish sequestration system. (On the Law of Bankruptcy, Insolvency, and Mer cantile Sequestration in Scotland, by J. H. Burton, Esq., Advocate.) Irish law of bankruptcy has been gradually assimilated to the English law by several recent acts (6 & 7 Win. IV. c. 14 ; amended by 1 Vict. c. 48, and 2 & 3 Vict. c. 86). There is no separate court of bankruptcy ; but there are two commissioners who are empowered to act by a commission under the great seal. There are no official as signees.
United States of North America.— In 1841 an act was passed by Congress to establish a uniform system of bank ruptcy throughout the United States of North America. The act came into operation early in 1842. The courts in vested with jurisdiction, in the first in stance, in bankruptcy cases, are the Dis trict Courts of the United States ; and they are empowered to prescribe rules and regulations and forms of proceed ings in all matters of bankruptcy, sub ject to the revision of the Circuit Court of the district. The district courts de cide if the persons who apply to them, whether debtors or creditors, are entitled to the provisions of the bankrupt law ; appoint commissioners to receive proofs of debt, and assignees of the estate ; and make orders respecting the sale of the bankrupt's property. If the debtor him self commences proceedings, he gives in a list of his creditors and an account of his property, and twenty days' notice at least must be given of the day when the petition will be heard, when any person can be heard against it. If the is decreed, the bankrupt's property is vested in an assignee. The bankrupt is allowed to retain his neces sary household and kitchen furniture, and such other articles as the assignee shall think proper, with reference to the family, condition, and circumstances of the bankrupt, but the whole is not to ex ceed 300 dollars in value : the wearing apparel of the bankrupt, his wife, and children, may also be retained by him in addition. An appeal lies to the court from the decision of the assignee in this mat ter. The bankrupt next petitions for a full discharge from all his debts, and a certificate thereof and after seventy days' public notice, and personal service or notice by letter to each creditor, the petition conies on for hearing. The grounds for refusing the bankrupt his discharge and certificate are the same generally as those which disentitle a bankrupt in this country to the favour able consideration of the court—conceal ment of property, fraudulent preference of creditors, falsification of books, &c. In cases of voluntary bankruptcy a pre ference given to one creditor over an other disentitles the bankrupt to his dis charge, unless the same be assented to by a majority of those who have not been preferred. If at the hearing a majority of the creditors in number and value file their written dissent to the allowance of the bankrupt's certificate and discharge, he may demand a trial by jury, or may appeal to the next circuit court ; and upon a full hearing of the parties, and proof that the bankrupt has conformed to the bankrupt laws, the court is bound to decree him his discharge and grant him a certificate. The discharge and certificate are equivalent to the certificate granted to bankrupts in England. In case of a second bankruptcy the bank rupt is not entitled to his discharge unless 75 per cent. has been paid on the debt of each creditor which shall have been al lowed. Persons who work for wages are only entitled to wages to the extent of twenty-five dollars each out of a bank rupt's estate for labour done within six months next before the bankruptcy.