Of the treatment of embarrassed and insolvent debtors. It is proposed to treat embarrassed and insolvent debtors on the following principles.

81. To subject the management of the debtor's affairs to the direction of meetings of his creditors, under the control of a commissioner learned in the law.

82. If embarrassed but not insolvent, to grant a license exempting him from legal processes for a given time.

83. If insolvent, to take all the property he has unappropriated, to divide it rateably among the creditors, and to relieve the debtor from further claims, subject however to any new property which he may acquire being liable for the deficiency of his dividends, under certain regulations, and subject also to his being punished, if his insolvency be declared to be dishonest or culpable.

Of a voluntary surrender of the debtor's effects.

84. A debtor finding himself insolvent, or unable to pay the demands of his creditors, may and ought, to tender a voluntary provisional surrender of his effects to the commissioner of his district, and upon his doing so, all processes against him for debts shall be suspended.

85. From the time of his making such tender, until he receive a license," or until his effects are taken possession of by the commissioner, he is to hold his property, and to manage his affairs in trust for his creditors, and strictly to account to them for his possession thereof, and his dealings therewith, as an agent to his principal.

Of a claim for sequestration of the debtor's effects, at the instance of a creditor.

86. A debtor is to be deemed a bankrupt, if with apparent intent to avoid or delay the demands of a creditor, or a legal process for debt, he depart from his dwelling house, or cause himself to be denied to a creditor, or a creditor's agent, when at home; or if he grant or assign his property to another, without a just consideration, or cause it to be sequestrated, or suffer himself to be outlawed; and also if he fail to make payment, or satisfaction for any outstanding bill of exchange, which he has accepted, or any promissory note or undertaking to pay a specific sum of money, which he has issued, for a period of two months after the time when any such bill, note, or undertaking became due; or shall fail to pay any sum which he may be directed to pay by a Court of Law or Equity, for two months after the said payment shall have become due, or shall remain in confinement for two months, under any processes for debt, or being under legal arrest or detention for any debt, shall escape from custody.

87. If a creditor to the amount of 51. declare to the commissioner upon oath, that his debtor has committed an act of bankruptcy, or if he prove by a statement of circumstances that the debtor has committed fraud or dishonesty against him, and give bond for 100l. to the satisfaction of the commissioner, to be forfeited to the debtor in case he, (the creditor) shall have made an unjust declaration, the commissioner may, according to circumstances, first issue his warrant for the seizure of the debtor, his property, and papers; secondly, summon him to shew cause why such warrant should not be issued.

88. Upon a "provisional surrender," or a "sequestration" of the debtor's effects taking place, the debtor is to make out to the best of his knowledge and belief, with all reasonable diligence, and to deliver to the commissioner, a full, true, and particular account, or schedule of all the persons to whom he stands indebted, or who claim to be his creditors, with the nature and amount of their respective claims, distinguishing such claims, or parts of claims, as he admits, from such as he disputes, also of all his property, fixed and moveable, whether in possession, reversion, remainder, or expectancy, or in security, of all places, pensions, and annuities, and of all property, or income in trust, from which he derives, or may derive any advantage, together with a full, true, and particular account, of all debts owing to him, or to others in trust for him. Giving the name, place of abode, and descriptions of all such debtors to him, and of the witnesses who can prove such debts, and also of all his creditors, and also a schedule of wearing apparel, bedding, and working tools, in use by himself and his family, not exceeding in value twenty pounds, with the value of each article respectively, which articles the debtor may except from the surrender of his property, and reserve for his own use.

89. As soon as the debtor has prepared a proper statement of his affairs, a meeting of creditors is to be called by the commissioner; or if such statement be not produced within a reasonable time, the meeting is to be called by the commissioner without it.

90. At the first meeting of the creditors let a chairman be elected, whose duty it shall be to preserve order at meetings, and to sign the resolutions of the meetings.

91. At the first meeting of the creditors the debtor's schedule is to be produced and considered. Previous to the second meeting the creditors are to send to the debtor the particulars of their respective claims. To these the debtor is to affix his remarks and exceptions in writing. At the second meeting let these be examined by the creditors at large, when, or as soon after as the investigation is sufficiently advanced, it must be

determined either to grant the debtor " a license," or to declare him" insolvent."

92. If it appears, that he has sufficient property to pay all his debts, but that he cannot render that property available to pay existing demands immediately, although it is likely that he will be able to render it available within twelve months, in such case he is to render such property available, with all due speed, and pay over his surplus receipts to a trustee, on behalf of his creditors, in consideration of his doing which he is to have a license to carry on his affairs free from pending and further suits for debt on the part of his creditors, for a limited time, such license however to be immediately void, on his failing to perform his duty to his creditors faithfully. Let the license be made out and signed by the creditors present, and let them choose on their behalf, an auditor to examine his accounts from time to time. The license is not to have effect until approved by the commissioner, the same to be notified by his signature to the license.

93. If the debtor be deemed insolvent, a minute of the proceeding declaring the debtor insolvent, is also to be sent to the commissioner; and if the debtor has not already surrendered, upon the signature of a majority of the bona fide creditors present, to such minute, and such minute being countersigned by the commissioner, the whole of the property belonging to the debtor is to become sequestrated, and vested in the commissioner, in trust for the creditors at large, and may be taken possession of by him, without any further act in law.

94. At the second meeting let a manager be elected, to manage the estate, under the direction or control of the meetings of creditors; to collect debts due to it, and give discharges for the same, to investigate claims thereon, to distribute dividends, to keep the accounts of the estate, to pay into the hands of the trustee or banker, all sums which come to his hands, as often as they amount to 1007. Let a trustee or banker be at the same time appointed, to receive all the money collected for the estate, and to pay drafts on account thereof, when signed by the chairman, and countersigned by the manager. Let an auditor also be appointed, to examine the accounts of the manager and trustee, and the authorities and vouchers for the same, and to report thereon to the meeting and the commissioner, before a dividend be made.

95. At a future meeting, not being sooner than the third, in the notice for which the subject is to be set forth, let the question whether the debtor is to be certified simply "insolvent debtor," or declared to be a "culpable," or " dishonest debtor," be considered, and if further enquiry be not necessary, determined. 96. If no acts of culpability or dishonesty as a debtor, be

proved against him, he is to be deemed simply "an insolvent debtor," and to receive " a certificate" to that effect, signed by the commissioner of insolvency.

97. If he has protracted litigation with his creditors after he became insolvent, merely to delay justice; or if he has indulged in gambling, drunken, or idle, or dissolute habits, to the injury of his affairs; or if he has neglected to keep proper accounts, or if he has made a conversion of his property, or some part of it, to benefit one person, or more, to the prejudice of his creditors generally; or if, becoming insolvent, he has lived extravagantly, or under declining circumstances has not used his best endeavours, by industry and frugality, to repair his losses, or to lighten the loss upon his affairs to his creditors; if he has contracted the greater part of his debts in carrying on speculations, having a chance of great gain, but an evident risk of great loss, in which latter event he became involved, and unable to pay one half of the amount of his debts; or if he has not conducted himself in all respects as an honest and conscientious debtor, he is to be convicted and declared a "culpable insolvent debtor," and as such, incur a suspension of civil rights for two years.

98. If he has set up any fictitious expenses or losses. If he has applied to his own use any sums of money, or any moveables entrusted to him for safe custody, or as agent. If he has made any fictitious debts or bargains by collusion with pretended creditors, by means of simulated writings, or by making himself debtor, without having received any adequate or fair consideration. If he has made any fraudulent sales, bargains, or gifts, to the prejudice of his creditors. If he has bought goods on credit, apparently to turn them into currency without profit, and in fact has sold them shortly afterwards at a less price, and below their fair value. If he has artfully obtained money on security which is invalid, or loaded with prior incumbrances which he has not disclosed, and which, in consequence of such incumbrance, is not an available or sufficient security. If after "a provisional surrender," or "a sequestration," of the debtor's property, he shall fraudulently convert the same, or the proceeds thereof, to his own use, or cause or suffer the same to be fraudulently secreted, removed, or destroyed; or if with intent to deceive his creditors, he shall have kept any simulated accounts, or destroyed any accounts; or if he wilfully render a false or defective schedule, or fail to produce any schedule to the commissioner of insolvency, upon being by him required to produce his schedule; or if he conceal his books, or if being a trader he has kept no books, or if his books do not show a true statement of debit and credit, from his beginning to trade, or for

a period of seven years at the least; or if he shall not truly and fully answer all proper questions put to him in an examination by the commissioner, or at a meeting of his creditors; or if he shall not surrender himself for examination, when duly summoned, he is to be convicted and declared "a dishonest debtor," and as such, incur the penalties of solitary imprisonment from 4 to 24 weeks, and forfeiture of civil rights.

99. The instruments declaring a debtor " culpable" or " dishonest," must set forth clearly the facts on which the judgment is formed, as coming under some one or more of the above rules.

100. The commissioner, chairman, manager, trustee, or auditor, may convene a meeting of creditors, by notice sent to each. If either a removal of officers, the commencement of a suit in law or equity, or the certificate or conviction of the insolvent, be questions intended to be moved, the same must be minuted in the notice. No meeting of creditors is valid unless so convened.

101. The meetings of the creditors are to have the general management of the insolvent's estate, and to consider the claims thereon. Their resolutions are to be governed by a majority present. When the votes are equal, the chairman is to have an additional or casting vote. Upon the specific complaint of the debtor, or of a creditor, the commissioner may, if he see fit, by his order suspend the effect of a resolution, and order it to be reconsidered by the creditors, stating the ground of his objection in writing. If they persist in the said resolution, they are to give their reasons for it in writing to the commissioner. If he remain dissatisfied he may examine such witnesses as may be tendered on either side, in open court, and make such order on the case as he judges to be right; provided that if such order affect the character of the debtor, an appeal to a jury shall lie from such decision, at the instance either of the debtor or a creditor. The appellant giving sufficient security to cover the probable expense of the appeal.

102. The meetings of creditors to have the power to institute suits for the protection or recovery of property due to the insolvent's estate, to prosecute depredators thereon, to accept composition for debts, to grant leases on the estate, to sell such parts as they may deem best, if their claims may be satisfied by the proceeds of a partial sale, to mortgage the estate, if a sum can be raised thereon sufficient to satisfy their claims.

103, If the creditors leave the question of the debtor's certificate or conviction undecided, for an unreasonable length of time, the commissioner may in open court, giving notice to