Before the passing of 1 & 2 Wm. IV. C. 56, the commissioners of bankruptcy executed a deed of assignment to the as signees 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 absolute17 vested in the assignees by virtue of their appointment ; and in ease of any new assignee being appointed, it vests in him jointly with those before appointed.
The copyhold estate of the bankrupt does not pass to the assignees by virtue of their mere appointment, but the com missioners 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 vendee. Property which the bankrupt holds as trustee for others does not pass to his assignees. Whatever bene ficial interest the bankrupt may have in property of his wife passes to his assig nees; but property which she enjoys as a sole trader m 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 pro perty 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 flat are void.
This rale of law occasioned much hard ship in many instances to persons who had dealt with the bankrupt in ignorance of his having committed an act of bank ruptcy, and it has therefore been mate rially qualified by various legislative provisions.
If nine-tenths in number and value of the creditors agree at two separate meet ings of creditors held after the last ex amination to accept a composition, the fiat may be annulled. Creditors under 20/. are not entitled to vote, but their debts are reckoned in value. The bankrupt may be required to take oath that he has 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 commis sioners, and has surrendered up his pro perty and effects, and in other respects conformed to the requisitions of the Bank rupt Act, he becomes qualified to receive a certificate, which operates as a discharge from all debts due by him when he be came a bankrupt, and from all claims and demands made proveable under the fiat.
The 6 Geo. IV. c. 16, required that the certificate should be signed by four-fifths in number and value of the creditors who had proved debts above 20l.; or after six calendar months from the last examina tion of the bankrupt, either by three-fifths in number and value of such creditors, or by nine-tenths in number of such creditors. But the present law dispenses with the signatures of the creditors, and the court, which is authorized to act in the prose cution of any fiat in bankruptcy, holds a public sitting, of which due notice is given to the solicitor of the bankrupt's assignees, and in the London Gazette,' and at such sitting any of the creditors may be heard against the certificate being allowed, but the court will judge for itself of the validity of such objections as are made, and either find the bank rupt entitled thereto and allow the same, or refuse or suspend it, or annex such conditions to its allowance as the justice of the case may require. The certificate, the form of which is prescribed in the 12 & 13 Vict. c. 106, will also, as already intimated, express the cause of bank ruptcy, and in what degree it has been occasioned by misfortune or not. Fur ther, the bankrupt is required to make oath in writing that such certificate has been obtained fairly and without fraud. The certificate bars all debts that had been incurred at the time of bankruptcy, unless it be a debt due to the crown, Bunb. 202.
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 200/. within one year next preceding his bankruptcy; or if he has, within that period, lost 2001. 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 con tract; or if he have, after bankruptcy or in contemplation of bankruptcy, destroy ed, altered, mutilated, or falsified any of his hooks 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, with out disclosing it to the assignees within one month after such knowledge.