Lord Broughamsaid, he had to lay on their Lordships' Table two bills which had for their object to improve the law of bankruptcy in certain cases, to facilitate arrangements between debtor and creditor, and to alter materially the law of imprisonment for debt. His noble and learned Friend (Lord Cottenham) had given notice of his intention to introduce a bill next Session for the total abolition of imprisonment for debt. lie was sorry that his noble and learned Friend had not laid his bill on the Table in the present Session, as their Lordships would have had the advantage of considering it during the recess. The present bills did not either of them go the length of total abolition of imprisonment for debt, but they tended greatly to relax the operation of the law, and to make it work that abolition completely. In the reforms that had been already made iii the law the principle of imprisonment had also been much relaxed, while additional facilities were given to the creditor to recover his property from his debtor. By the first of the bills which he now presented, great facilities were also given for arrangements between debtor and creditor, with the view just mentioned, and by the second protection from arrest to the person of the debtor was effectually afforded. It left the general law of debtor and creditor just as it was, but a power of protecting the debtor was conferred on the Bankrupt commissioners; while the debtor was enabled to enter into a composition with his creditors, with the sanc- 490 tion of the commissioners. The first of the bills was drawn up with great skill and practical knowledge. He said this very willingly, he had had nothing to do with framing it. One of the learned commissioner (Commissioner Fonblanque) bad devoted his attention to the task with much success. The second bill which he (Lord Brougham) had prepared, had the same object, but it went further. It relaxed the law of imprisonment for debt, hut on a principle different from that of the other bills. If he could persuade their Lordships to pass a measure for the total and immediate abolition of imprisonment for debt, with, of course, due safeguards in cases of fraud, the present bill would tot be so necessary, but it went on the supposition that a total and immediate abolition of imprisonment for debt could not be obtained. It therefore proposed greatly to relax the law which it did not abolish, and to preserve the law only for the purpose of working that abolition less directly. It enabled every debtor to petition a court of bankruptcy, due notice being given to three-fourths of his creditors in number and value, and there to submit himself to examination as to his debts and mode of contracting them, his assets, and the debts due to him. He might produce witnesses, and the creditors might have the whole of his affairs undergo the most strict investigation. At this hearing any of his creditors might oppose the debtor's discharge; but, unless the court saw good cause shown to the contrary, it had the power, and of course the duty, to protect the debtor's person. This protection might bed extended from time to timer, till the final examination, and then a perpetual protection be given. But this protection might at any subsequent time be withdrawn, upon proof, being made to the Court's satisfaction that property had been fraudulently concealed, or any other act done which would have justified the refusal of protection. This would be the means of securing bonâ fide statements as to debts and dispositions of property. He thought the provisions of the two bills would be most useful in their operation, and he now moved that they be read a first time.
§ Lord Cottenhamhoped the bills were not brought in on the assumption of the fact that their Lordships were hostile to, 491 and would not pass, the larger measure of relief in the bill of which he had given notice, for the total abolition of imprisonment for debt. He saw no reason to despair of being able to induce their Lordships to go with the whole principle of his bill.
Lord Broughamhad no doubt, that this second bill would facilitate the total abolition, if it should be found not to affect that object of itself, which he trusted it would.
§ Bills read a first time.