The order of discharge for a bankrupt is to be pronounced by the Court on his application, which must be heard in open Court; the official receiver and the trustee’s reports, as well as any creditor’s observations, being duly considered.
No exact time is fixed by law for such an application, which the bankrupt may present directly on the conclusion of his public examination by the Court.
Discharge will be refused if the bankrupt has not kept proper books within three years immediately preceding his bankruptcy; or if he continued to trade knowing himself to be insolvent; or if he have contracted any debts when he had no reasonable expectation of being able to pay them; or if he have brought on his bankruptcy by rash or hazardous speculation ; or, within three months, put any creditor to unnecessary expense in an action ; or given, within three months previous, undue preference to any creditor; or been previously adjudged a bankrupt and failed to account for any loss or deficiency of assets; or incurred liabilities, within three months previous, with a view to making his assets equal to ten shillings in the pound.
The discharge obtained from the Court releases the bankrupt both from the civil effects of the adjudication of bankrupt and from all debts provable in bankruptcy ; but not from such proceedings as may at any time be taken against him in consequence of any act, misdemeanour or any other criminal offence he may have been guilty of in bankruptcy.
ADVERTISEMENTS:
Range of Action of the Law.-
In England any citizen trading either in his own name, or in partnership with others, is subject to the provisions of the Bankruptcy Acts; the sole mercantile persons excluded from their operation being corporations and companies duly registered as joint stock companies, the winding-up of which is regulated by the Companies Acts (see pages 14-20).