Some Notes on Bankruptcy in England in the 1820's.

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The following notes may explain some of the strangeness of the bankruptcy proceedings in England at the time of William and John's bankruptcy.

In the 1820's, if you were a trader, you could only be made bankrupt if you owed more than 100 pounds sterling.

A Creditor could petition the Lord Chancellor, declaring an intention to render a debtor bankrupt, by striking a docket. The creditor had to enter a bond (a sum of money which was forfeit if the application was false).

The Lord Chancellor then issued a Commission of Bankruptcy citing the debtor and summoning him to surrender himself and his possessions to a nominated Commissioner or his assignee. The Commission was announced in the London Gazette to alert all potential creditors and give notice of the three meetings called by the Commissioner which the debtor was obliged to attend to face his creditors.

At the first or second meeting the creditors elected their assignee, who was sworn in by the Commissioner, and given the task of collecting in moneys owed to the debtor and of inventorying and valuing his estate, which might later form the basis of any sale.

At the last meeting (supposedly within 42 days of the announcement in the London Gazette) a business account was produced by the debtor setting out a statement of his affairs. The 42 day period was usually extended to allow enough time to produce the accounts.

The Commissioner collected sworn depositions and affidavits from the creditors proving the moneys owed to them, and from relatives and business associates of the debtor,to determine whether he met the statutory requirements of a bankrupt.

Proceedings could be terminated if the debtor proved he was not bankrupt, by paying all his debts in full, or by coming to some sort of arrangement with his creditors.

A certificate of Conformity was issued, discharging the debtor, on the petition of the creditors. if they and the Commissioner were satisfied with the state of his affairs.

The property was then sold off in batches. After each batch all parties met to audit the accounts. Dividends (i.e. 2 shillings in the pound) would be agreed and distributed. The first dividend would normally be paid within 4 months and the last up to 18 months after the announcement of the Commission of Bankruptcy.

Whereas by an Act, passed in the sixth year of the reign of His present Majesty, intituled "An Act to amend the laws relating to Bankrupts", it is enacted "That if any Trader shall file in the Office of the Lord Chancellor's Secretary of Bankrupts a Declaration, in writing, signed by such Trader, and attested by an Attorney or Solicitor, that he is insolvent or unable to meet his engagements, the said Secretary of Bankrupts shall sign an authority for inserting the said Declaration in the Gazette, and that every such Declaration shall, after such advertisement inserted as aforesaid, be an Act of Bankruptcy committed by such Trader at the time when such Declaration was filed, but that no Commission shall issue thereupon unless it be sued out within eight days after such act of Bankruptcy after such Declaration filed; and no Docket shall be struck upon such act of Bankruptcy before the expiration of four days next after such insertion in case such Commission is to be executed in London, or before the expiration of eight days next after such insertion in case such Commission is to be executed in the Country:" - Notice is hereby given, that a Declaration was filed ...

On the 29th day of January, 1828, by

WILLIAM BAYNES and JOHN BAYNES, of Paternoster Row, London, Booksellers and Copartners,. that they are in insolvent circumstances and are unable to meet their engagements with their creditors.

Whereas a Commission of Bankrupt is awarded and issued forth against William Baynes and John Baynes, of Pater Noster-Row, in the City of London, Booksellers and Copartners, Dealers and Chapman, and they being declared Bankrupts are hereby required to surrender themselves to the Commissioners in the said Commission named, or the major part of them, on the 22d of February instant, at Eleven in the Forenoon, on the 29th of the same month, and on the 18th of March next, at Ten in the Forenoon, at the Court of Commissioners of Bankrupts, in Basinghall-Street, in the City of London, and make a full discovery and disclosure of their estate and effects, when and where the Creditors are to come prepared to prove their debts, and at the second sitting to choose Assignees, and at the last sitting the said bankrupts are required to finish their examination, and the Creditors are to assent to or dissent from the allowance of their Certificate. All persons indebted to the said Bankrupts or that have any of their effects, are not to pay or deliver the same but to whom the Commissioners shall appoint, but give notice to Messrs. Green and Ashurst, Solicitors, Sambrook-Court, Basinghall-Street.

The Creditors who have proved their debts under a Commission of Bankrupt awarded and issued forth against William Baynes and John Baynes, of Paternoster-Row, in the City of London, Booksellers, Copartners, Dealers and Chapmen, are requested to meet the Assignees of the estate and effects of the said bankrupts, on Wednesday the 19th day of March instant, at Eleven o'Clock in the Forenoon precisely, at the Court of Commissioners of Bankrupts, in Basinghall-Street, in the City of London, to assent to or dissent from the said Assignees selling or disposing of the stock in trade, book-debts and effects of the said Bankrupts by public auction or private sale, for ready money or upon credit, in such manner and upon such terms and in such portions as the said Assignees shall see fit; and also to or from the said Assignees carrying on the trade of the said Bankrupts at the risk of the estate, and buying and selling therein until the stock in trade shall be other wise disposed of, and to their employing the said Bankrupts, or either of them, or any other person, with all necessary assistants, to carry on and conduct the same, and paying them for their services after such rate as the said Assignees shall see fit; also to or from their selling and disposing of the leasehold estates of the said Bankrupts, or either of them by public auction or private contract, or surrendering and delivering up such leases, or either of them, as they may see fit; also to or from their paying to any persons the full amount or any portion of their respective liens on goods belonging to the Bankrupts' estate, or to their consenting to the sale thereof by public sale or private contract with the holders, to take the same at prices to be agreed upon as the Assignees may see fit; also to or from their selling and disposing of copyright or other interest of the said Bankrupts in any books or works, or to their giving up or otherwise arranging for the same as they may see fit; also to or from their selling and disposing of the household goods and furniture of the said Bankrupts, or to their giving to them, or either of them, the same or any portion thereof, or permitting them, or either of them, or the person to be employed in the conduct of the said trade, to use or retain the same until the stock and effects shall be disposed of; also to or from their paying to the clerks, shopmen, servants and others employed by the said Bankrupts in their trade their salaries and wages in full; and to their continuing to employ and pay such of them as they may deem necessary; also to or from their employing and paying an accountant or other person or persons to collect outstanding debts due to the Bankrupts estate in various parts of the Kingdom, either with or without security; also to or from their paying or allowing to the provisional Assignee, either by way of commission or otherwise, a compensation for his care and trouble in conducting the said Bankrupts' trade up to the choice of Assignees, and confirming his accounts to that period; also to or from their paying the bill of costs of the Solicitors employed by the Bankrupts and Creditors, in and about affecting the intended arrangement of the affairs of the Bankrupts prior to the Commission; and the said Creditors, together with such such others as shall then have proved their debts, are also requested to meet the said Assignees, on Saturday, the 29th day of March instant, at Ten o'Clock in the Morning precisely, at the place aforesaid, to assent to or dissent from the said Assignees commencing, prosecuting and defending any action at law, or suit in equity, or presenting, consenting to, or appearing to any petition in Bankruptcy, for recovering receiving, defending and protecting the estate and effects of the said Bankrupts, or compromising or compounding, referring to arbitration or otherwise, any debt due to the estate, or agreeing any matter or thing relating thereto; and on other special affairs.