Court of King's Bench x Court of Queen's Bench Court of Exchequer Court of Bankruptcy

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Court of King's Bench x Court of Queen's Bench Court of Exchequer Court of Bankruptcy

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        Until 1841, the legal status of being a bankrupt was confined to traders owing more than £100 (this was reduced to £50 in 1842). Debtors who were not traders did not qualify to become bankrupt, but stayed as insolvent debtors, who were held responsible for their debts but unable to pay them, they remained subject to common law proceedings and indefinite imprisonment, if their creditors so wished. The legal definition of 'trader' came to include all those who made a living by buying and selling and included all those who bought materials, worked on them and then re-sold them. Those who wished to qualify as bankrupts, and thus avoid the awful fate of an insolvent debtor, sometimes gave a false or misleadingly general description of their occupations: "dealer and chapman" was very common.

        The Bankruptcy Act of 1571 allowed commissioners of bankrupts to be appointed; so that a bankrupt could discharge his debts by sale of his assets, and then begin trading again with his debts cleared. The bankrupt's creditors would petition the Lord Chancellor to allow a commission of bankruptcy. These Commissioners were independent assessors who would decide whether the debtor was eligible for bankruptcy proceedings, and oversee the sale of his assets and repayment of his creditors. In 1832 the Court of Bankruptcy was established.

        Source of information: The National Archives Research Guide "Legal Records Information 5: Bankrupts and Insolvent Debtors: 1710-1869" (available online).

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