If no cause can be shown for annulling the adjudication, the court is required forthwith to give notice of the adjudica tion 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 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 ream. After such surrender the court is authorized to make such allowance to the bankrupt out of his estate, till he ha.. 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 pro perty, with all books, papers, &c., relat ing 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 books, or making false entries, he may be imprisoned for any term not ex ceeding 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 writ ing, attend the assignees to settle any accounts between his estate and any debtor or creditor, or do any act neces sary for getting in his estate, being paid 51. a day by the assignees. The bank rupt is protected from arrest in coming to surrender, and also during the sixty days, or any enlarged time allowed for finishing his examination.
The commissioners sign a warrant of seizure of the bankrupt's effects ; and in case there is reason to suspect that pro perty of the bankrupt is concealed in any premises not his own, a justice of the peace is authorized to grant a search warrant. A. bankrupt who conceals goods, &c., to the value of 101. is guilty of felony, and liable to transportation for life, or imprisonment, with or without hard la bour$ for any term not exceeding seven years.
One of the most important parts of the proceedings in bankruptcy is the proof of debts. Every person to whom the bank rupt is fairly indebted is entitled to esta blish his debt, and to receive a portion of the bankrupt's estate. All debts legally due from the bankrupt at the time of the met 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 ou 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 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 —I. 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 5onkrupt; 8. where there are no sepa rate debts, the joint creditors may oe course prove against the estate of the partner who is bankrupt. But for the mere purposes of assenting to or dissent ing from the certificate of the bankrupt and of voting for assignees, joint creditors may prove under a separate fiat, and sepa rate 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 the funds available for the payment of their debts ; nor can those partners of a firm who re main solvent prove against the separate estate of a member of that firm in com petition with his separate creditors, unless the joint creditors be first paid 20s. in the pound and interest.
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.