A creditor's claim against a bankrupt's estate must be made on oath and upon the prescribed form called the proof of debt. (See PROOF OF DEBTS.) A bankrupt may, at any time after being adjudged bankrupt, apply to the Court for an order of discharge, and the Court shall appoint a day for hearing the application. (See DISCHARGE OF BANKRUPT.) If a debtor gives a creditor a preference over other creditors, and he is adjudged a bankrupt on a petition presented within three months thereafter, the preference shall be deemed fraudulent and void as against the trustee. (See FRAUDULENT PREFERENCE.) Any settlement of property shall, if the settlor becomes bankrupt within two years after the date of the settlement, be void against the trustee, or if he becomes bank rupt at any time within ten years after that date, be also void against the trustee, unless it is proved that the settlor was able to pay all his debts at the time he made the settle ment, without the aid of the property comprised therein. (See SETTLEMENTS SETTLOR BANKRUPT.) Section 49 of the Bankruptcy Act, 1883, with respect to bond file transactions with out notice, provides as follows : " Subject to the foregoing provisions of this Act with respect to the effect of bank ruptcy on an execution or attachment, and with respect to the avoidance of certain settlements and preferences, nothing in this Act shall invalidate, in the case of a bank ruptcy— (a) Any payment by the bankrupt to any of his creditors, (b) Any payment or delivery to the bankrupt.
(c) Any conveyance or assignment by the bankrupt for valuable consideration, (d) Any contract, dealing, or transaction by or with the bankrupt for valuable consideration, Provided that both the following condi tions are complied with, namely " (1) The payment, delivery, conveyance, assignment, contract, dealing, or transaction, as the case may be, takes place before the date of the receiving order ; and • (2) The person (other than the debtor) to, by, or with whom the payment, delivery, conveyance, assignment, contract, dealing, or transaction was made, executed, or entered into, has not at the time of the payment, delivery, conveyance, assignment, contract, dealing, or transaction, notice of any available act of bank ruptcy committed by the bankrupt before that time." It is the duty of the trustee to declare and distribute dividends amongst the creditors who have proved their debts. (See DIVI DENDS—IN BANKRUPTCY.) If a debtor's estate is not likely to exceed 1300 in value, it may be administered in a simpler manner than in the case of an ordinary bankruptcy. (See SUMMARY
ADMINISTRATION.) Where a judgment has been obtained in a county court and the debtor is unable to pay, and his total indebtedness does not exceed 150, the county court may make an administration order. (See ADMINISTRATION ORDER.) A debtor who is unable to pay his creditors is not always dealt with under the Bank ruptcy Acts. He may call his creditors together and offer a composition, that is, to pay each creditor only so much in the pound (see COMPOSITION WITH CREDITORS), or he may offer to assign his property to a trustee, in order that it may be realised and the proceeds divided amongst the creditors.
(See ASSIGNMENT FOR BENEFIT OF CREDI TORS.) When an arrangement is made in either of those ways and is embodied in a deed or agreement, the deed of arrangement or agreement must be registered within seven days. (See DEED OF ARRANGEMENT.) Property which is acquired by an undis charged bankrupt may be claimed by his trustee. (See BANKRUPT PERSON.) The estate of a deceased debtor may be administered by the Court, according to the law of bankruptcy. (See DEATH OF INSOLVENT DEBTOR.) An advertisement in the London Gazette of a receiving order or an adjudication order is conclusive evidence of the order having been made. (See GAZETTED.) Stamp Ditty.
By Section 144 of the Bankruptcy Act, 1883 :—" Every deed, conveyance, assign ment, surrender, admission, or other assur ance relating solely to freehold, leasehold, copyhold, or customary property, or to any mortgage, charge, or other incumbrance on, or any estate, right, or interest in any real or personal property which is part of the estate of any bankrupt, and which, after the execution of the deed, conveyance, assign ment, surrender, admission, or other assur ance, either at law or in equity, is or remains the estate of the bankrupt or of the trustee under the bankruptcy, and every power of attorney. proxy paper, writ, order, certifi cate, affidavit, bond, or other instrument or writing relating solely to the property of any bankrupt, or to any proceeding under any bankruptcy, shall be exempt from stamp duty, except in respect of fees under this Act." By Section 16 of the Finance Act, 1895, the above Section " shall apply to the estates , of companies wound up by order of the Court under the Companies Winding-up Act, 1890.
and to such winding-up, in like manner as if the company were a bankrupt and the winding-up were a bankruptcy." (See ACTS