A complete exposition of the new Act, with all the decisions on the provisions of those it has consolidated, and the explanation of the forms of procedure, belong to works that treat specially of legal matters. But viewed as a mode of settling the claims of creditors against their debtors, the bankrupt law of Eng land is an important subject in our pub lic economy.
The first peculiarity in the bankrupt laws is, that only those persons can have the benefit of them who are particularly described, namely, bankers, brokers, and persons using the trade or profession of a scrivener, receiving other men's mone)s or estate into their trust or custody ; and persons insuring ships, or their freight, or other matters, against perils of the sea ; warehousemen, wharfingers, pack.. ere, builders, carpenters, shipwrights, victuallers, keepers of inns, taverns, hotels, or coffee-houses, dyers, printers, bleachers, fullers, calenderers, cattle or sheep salesmen, livery-stable keepers, coach proprietors, carriers, ship-owners, auctioneers, apothecaries, market-gar. deners, cowkeepers, brickmakers, makers, lime-burners, millers, and all persons using the trade of merchandise by way of bargaining, exchange, barter.. ing, commission, consignment, or other wise in gross or by retail ; and all persons who, either for themselves or as agents or factors for others, seek their living by buying and selling, or by buying or letting for hire, or by the workmanship of goods or commodities, shall be deemed traders liable to become bankrupts; provided that no farmer, grazier, common labourer or workman for hire, receiver-general of the taxes, or member of or subscriber to any incorporated commercial or trading companies, established by charter or act of parliament, shall be deemed, as such, a trader liable, by virtue of that act, to become bankrupt. Other persons, who might with as good reason claim the benefit of being made bankrupts, must be satisfied with the relief that they can obtain as non-traders under the insolvent acts.
In order that a man shall become liable to be made a bankrupt, he must commit, as it is termed, an act of bankruptcy. These acts are of two sorts: first, those which are only acts of bankruptcy when done with intent to defeat or delay his creditors ; secondly, certain acts which have that effect without reference to any intention. With respect to the first class it is enacted, that if any such trader shall depart this realm, or being out of this realm shall remain abroad, or depart from his dwelling-house, or otherwise absent himself, or begin to keep his house, or suffer himself to be arrested, or his goods, money, or chattels to be attached or sequestrated, or taken in execution, or make any fraudulent grant or conveyance of any of his lands, tene ments, goods, or chattels, or make any fraudulent surrender of any of his copy hold lands or tenements, or make any fraudulent gift, delivery, or transfer of any of his goods or chattels ; every such trader doing, suffering, procuring, exe cuting, permitting, making, or causing to be made, any of the acts, deeds, or matters aforesaid, with intent to defeat or delay his creditors, shall be deemed thereby to have committed an act of bankruptcy.
The acts here enumerated have refer ence to a trader's intention to defeat and delay his creditors; and if such intention is legally established, he may, by virtue of such acts, be made a bankrupt. The word realm means the jurisdiction of the courts of England, and therefore depart ing to Ireland or Scotland, or a British colony, which are out of such jurisdiction, may constitute an act of bankruptcy.
As to a trader being arrested for a debt, this is only an act of bankruptcy in itself when he can pay the debt, but pre fers going to prison with a view to defeat his general creditors. A compulsory going to prison under an arrest is only an act of bankruptcy when the imprisonment endures twenty-one days, as mentioned hereafter. It is also an act of bankruptcy if a man keep out of the way with intent to defeat and delay his creditors, in con sequence of which he is outlawed for want of due appearance to legal process.
An assignment by deed of all a trader's effects to trustees for the benefit of all his creditors is legally an act of bankruptcy. But if all the creditors (as often happens) assent to and sign such an instrument, it becomes valid, for they have all agreed not to consider it an act of bankruptcy. And such an assignment shall not be deemed an act of bankruptcy unless a fiat issue against the trader within six calen dar months from the execution of such arrangement by such trader; provided the assignment be executed by every trustee within fifteen days from the date of the execution by the trader, and the execution is attested and publicly notified in the manner pointed out by the statute. Generally when a trader makes over or parts with any portion of his property, it depends on the circumstances in which he then is, and to the intention, as shown by those circumstances and the nature of the transfer, whether it shall be consi dered an act of bankruptcy or not. Voluntary transfers of his property, par ticularly if he is in embarrassed circum stances, are presumptive evidence of an intention to defeat or delay his creditors or some of them, and are therefore acts of bankruptcy.