A mortgage loan or mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination; this means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can be described as "a borrower giving consideration in the form of a collateral for a benefit". Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property.
The lender will be a financial institution, such as a bank, credit union or building society, depending on the country concerned, the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, other characteristics can vary considerably; the lender's rights over the secured property take priority over the borrower's other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first. In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector or through the capital markets through a process called "securitization", which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.
According to Anglo-American property law, a mortgage occurs when an owner pledges his or her interest as security or collateral for a loan. Therefore, a mortgage is an encumbrance on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property; as with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time 30 years. All types of real property can be, are, secured with a mortgage and bear an interest rate, supposed to reflect the lender's risk. Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property. Although the terminology and precise forms will differ from country to country, the basic components tend to be similar: Property: the physical residence being financed; the exact form of ownership will vary from country to country, may restrict the types of lending that are possible.
Mortgage: the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property. Restrictions may include requirements to purchase home insurance and mortgage insurance, or pay off outstanding debt before selling the property. Borrower: the person borrowing who either has or is creating an ownership interest in the property. Lender: any lender, but a bank or other financial institution. Principal: the original size of the loan, which may or may not include certain other costs. Interest: a financial charge for use of the lender's money. Foreclosure or repossession: the possibility that the lender has to foreclose, repossess or seize the property under certain circumstances is essential to a mortgage loan. Completion: legal completion of the mortgage deed, hence the start of the mortgage. Redemption: final repayment of the amount outstanding, which may be a "natural redemption" at the end of the scheduled term or a lump sum redemption when the borrower decides to sell the property.
A closed mortgage account is said to be "redeemed". Many other specific characteristics are common to many markets, but the above are the essential features. Governments regulate many aspects of mortgage lending, either directly or indirectly, through state intervention. Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system. Mortgage loans are gen
A tribunal is any person or institution with authority to judge, adjudicate on, or determine claims or disputes—whether or not it is called a tribunal in its title. For example, an advocate who appears before a court with a single judge could describe that judge as'their tribunal'. Many governmental bodies that are titled'tribunals' are so described to emphasize that they are not courts of normal jurisdiction. For example, the International Criminal Tribunal for Rwanda is a body specially constituted under international law. In many cases, the word tribunal implies a judicial body with a lesser degree of formality than a court, to which the normal rules of evidence and procedure may not apply, whose presiding officers are neither judges nor magistrates. Private judicial bodies are often styled'tribunals'. However, the word tribunal is not conclusive of a body's function–for example, in Great Britain, the Employment Appeal Tribunal is a superior court of record; the term is derived from magistrates of the Classical Roman Republic.
"Tribunal" referred to the office of the tribunes, the term is still sometimes used in this sense in historical writings. In the Republic of Ireland, tribunal popularly refers to a public inquiry established under the Tribunals of Inquiry Act 1921; the main difference between a Parliamentary Inquiry and a Tribunal of Inquiry in Ireland is that non-statutory inquiries are not vested with the powers and rights of the High Court. Tribunals of Inquiry are. Tribunals are established by resolution of the Houses of the Oireachtas to enquire into matters of urgent public importance, it is not a function of Tribunals to administer justice, their work is inquisitorial. Tribunals are obliged to report their findings to the Oireachtas, they have the power to enforce the attendance and examination of witnesses and the production of documents relevant to the work in hand. Tribunals can consist of one or more people. A layperson, or non-lawyer, may be the Sole member of a tribunal; the tribunal system of the United Kingdom is part of the national system of administrative justice.
Though it has grown up on an ad hoc basis since the beginning of the twentieth century, from 2007 reforms were put in place to build a unified system with recognised judicial authority, routes of appeal and regulatory supervision. In the Netherlands, before the separation of lawmaking, law enforcement, justice duties, all sentences were delivered by a tribunal of seven schepenen or magistrates, appointed by the local count; such a tribunal was called a Vierschaar, so called for a rope -or cord -, drawn In a four-square dimension, wherein the judges took place on four benches. These benches were positioned in a square as well with the defendant standing in the middle. Towns had the Vierschaar privilege to hear their own disputes; the Vierschaar was located in the town hall, many historic town halls still have such a room decorated with scenes from the Judgment of Solomon. There are tribunals for settling various administrative and tax-related disputes, including Central Administrative Tribunal, Income Tax Appellate Tribunal, Customs and Service Tax Appellate Tribunal, National Green Tribunal, Competition Appellate Tribunal and Securities Appellate Tribunal, among others.
In several states, Food Safety Appellate Tribunals have been created to hear appeals against orders of adjudicating officers for food safety. Armed Forces Tribunal is a military tribunal in India, it was established under the Armed Forces Tribunal Act, 2007. The following tribunals exist within the Judiciary of the Hong Kong Special Administrative Region of the People's Republic of China: Lands, Small Claims, Obscene Articles. For public inquiries, commissions are set up instead, under the Commissions of Inquiry Ordinance. In the Roman Catholic Church, a tribunal refers to one of three instances of ecclesiastical courts: a diocesan tribunal a provincial tribunal, that is, of more than one diocese and referred to as an appellate court, or the Sacra Rota Romana, or Sacred Roman Rota, the highest court of appeals. In Australia, the term tribunal implies a judicial body with a lesser degree of formality than a court, with a simplified legal procedure presided over by a lawyer, not a judge or magistrate.
In many cases the lawyers who function as tribunal members do so only on a part time basis, spend the greater part of their time carrying out other aspects of legal practice, such as representing clients. In many cases, the formal rules of evidence which apply in courts do not apply in tribunals, which enables tribunals to hear forms of evidence which courts may not be allowed to consider. Tribunals deal with simpler matters. Appeal from a tribunal is to a court. Tribunals in the Australian judicial system include: Administrative Appeals Tribunal Migration Review Tribunal New South Wales Civil and Administrative Tribunal Queensland Civil and Administrative Tribunal State Administrative Tribunal of Western Australia Victorian Civil and Administrative Tribunal South Australian Civil and Administration Tribunal In
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order initiated by the debtor. Bankruptcy is not the only legal status that an insolvent person may have, the term bankruptcy is therefore not a synonym for insolvency. In some countries, such as the United Kingdom, bankruptcy is limited to individuals. In the United States, bankruptcy is applied more broadly to formal insolvency proceedings. In France, the cognate French word banqueroute is used for cases of fraudulent bankruptcy, whereas the term faillite is used for bankruptcy in accordance with the law; the word bankruptcy is derived from Italian banca rotta, meaning "broken bench", which may stem from a widespread custom in the Republic of Genoa of breaking a moneychanger's bench or counter to signify their insolvency, or which may be only a figure of speech. In Ancient Greece, bankruptcy did not exist.
If a man owed and he could not pay, he and his wife, children or servants were forced into "debt slavery", until the creditor recouped losses through their physical labour. Many city-states in ancient Greece limited debt slavery to a period of five years. However, servants of the debtor could be retained beyond that deadline by the creditor and were forced to serve their new lord for a lifetime under harsher conditions. An exception to this rule was Athens; the Statute of Bankrupts of 1542 was the first statute under English law dealing with bankruptcy or insolvency. Bankruptcy is documented in East Asia. According to al-Maqrizi, the Yassa of Genghis Khan contained a provision that mandated the death penalty for anyone who became bankrupt three times. A failure of a nation to meet bond repayments has been seen on many occasions. Philip II of Spain had to declare four state bankruptcies in 1557, 1560, 1575 and 1596. According to Kenneth S. Rogoff, "Although the development of international capital markets was quite limited prior to 1800, we catalog the various defaults of France, Prussia and the early Italian city-states.
At the edge of Europe, Egypt and Turkey have histories of chronic default as well." The principal focus of modern insolvency legislation and business debt restructuring practices no longer rests on the elimination of insolvent entities, but on the remodeling of the financial and organizational structure of debtors experiencing financial distress so as to permit the rehabilitation and continuation of the business. For private households, some argue that it is insufficient to dismiss debts after a certain period, it is important to assess the underlying problems and to minimize the risk of financial distress to re-occur. It has been stressed that debt advice, a supervised rehabilitation period, financial education and social help to find sources of income and to improve the management of household expenditures must be provided during this period of rehabilitation. In most EU Member States, debt discharge is conditioned by a partial payment obligation and by a number of requirements concerning the debtor's behavior.
In the United States, discharge is conditioned to a lesser extent. The spectrum is broad in the EU, with the UK coming closest to the US system; the Other Member States do not provide the option of a debt discharge. Spain, for example, passed a bankruptcy law in 2003 which provides for debt settlement plans that can result in a reduction of the debt or an extension of the payment period of maximally five years, but it does not foresee debt discharge. In the US, it is difficult to discharge federal or federally guaranteed student loan debt by filing bankruptcy. Unlike most other debts, those student loans may be discharged only if the person seeking discharge establishes specific grounds for discharge under the Brunner test, under which the court evaluates three factors: If required to repay the loan, the borrower cannot maintain a minimal standard of living. If a debtor proves all three elements, a court may permit only a partial discharge of the student loan. Student loan borrowers may benefit from restructuring their payments through a Chapter 13 bankruptcy repayment plan, but few qualify for discharge of part or all of their student loan debt.
Bankruptcy fraud is a white-collar crime. While difficult to generalize across jurisdictions, common criminal acts under bankruptcy statutes involve concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, fee fixing or redistribution arrangements. Falsifications on bankruptcy forms constitute perjury. Multiple filings are not in and of themselves criminal, but they may violate provisions of bankruptcy law. In the U. S. bankruptcy fraud statutes are focused on the mental state of particular actions. Bankruptcy fraud is a federal crime in the United States. Bankruptcy fraud should be distinguished from strategic bankruptcy, not a criminal act since it creates a real bankruptcy state. Howeve
Bankruptcy in the United States
In the United States, bankruptcy is governed by federal law referred to as the "Bankruptcy Code". The United States Constitution authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, including through adoption of the Bankruptcy Reform Act of 1978, as amended, codified in Title 11 of the United States Code and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Some laws relevant to bankruptcy are found in other parts of the United States Code. For example, bankruptcy crimes are found in Title 18 of the United States Code. Tax implications of bankruptcy are found in Title 26 of the United States Code, the creation and jurisdiction of bankruptcy courts are found in Title 28 of the United States Code. Bankruptcy cases are filed in United States Bankruptcy Court, federal law governs procedure in bankruptcy cases. However, state laws are applied to determine how bankruptcy affects the property rights of debtors.
For example, law governing the validity of liens or rules protecting certain property from creditors, may derive from state law or federal law. Because state law plays a major role in many bankruptcy cases, it is unwise to generalize some bankruptcy issues across state lines. Before 1898, there were several short-lived federal bankruptcy laws in the U. S; the first was the Bankruptcy Act of 1800, repealed in 1803 and followed by the act of 1841, repealed in 1843, the act of 1867, amended in 1874 and repealed in 1878. The first modern Bankruptcy Act in America, sometimes called the "Nelson Act", was entered into force in 1898; the current Bankruptcy Code was enacted in 1978 by § 101 of the Bankruptcy Reform Act of 1978, became effective on October 1, 1979. The current Code replaced the former Bankruptcy Act, the "Chandler Act" of 1938; the Chandler Act gave unprecedented authority to the Securities and Exchange Commission in the administration of bankruptcy filings. The current Code has been amended numerous times since 1978.
See the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Entities seeking relief under the Bankruptcy Code may file a petition for relief under a number of different chapters of the Code, depending on circumstances. Title 11 contains nine chapters; the other three chapters provide rules governing bankruptcy cases in general. A case is referred to by the chapter under which the petition is filed; these chapters are described below. Liquidation under a Chapter 7 filing is the most common form of bankruptcy. Liquidation involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors; because each state allows for debtors to keep essential property, Chapter 7 cases are "no asset" cases, meaning that the bankrupt estate has no non-exempt assets to fund a distribution to creditors. Chapter 7 bankruptcy remains on a bankruptcy filer's credit report as part of credit history for 10 years. United States bankruptcy law changed in 2005 with the passage of BAPCPA, which made it more difficult for consumer debtors to file bankruptcy in general and Chapter 7 in particular.
Advocates of BAPCPA claimed that its passage would reduce losses to creditors such as credit card companies, that those creditors would pass on the savings to other borrowers in the form of lower interest rates. Critics assert that these claims turned out to be false, observing that although credit card company losses decreased after passage of the Act, prices charged to customers increased, credit card company profits increased. A Chapter 9 bankruptcy is available only to municipalities. Chapter 9 is a form of reorganization, not liquidation. Notable examples of municipal bankruptcies include that of Orange County and the bankruptcy of the city of Detroit, Michigan in 2013. Bankruptcy under Chapter 11, Chapter 12, or Chapter 13 is more complex reorganization and involves allowing the debtor to keep some or all of his or her property and to use future earnings to pay off creditors. Consumers file chapter 7 or chapter 13. Chapter 11 filings by individuals are rare. Chapter 12 is similar to Chapter 13 but is available only to "family farmers" and "family fisherman" in certain situations.
Chapter 12 has more generous terms for debtors than a comparable Chapter 13 case would have available. As as mid-2004 Chapter 12 was scheduled to expire, but in late 2004 it was renewed and made permanent; the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 added Chapter 15 and deals with cross-border insolvency: foreign companies with U. S. debts. As a threshold matter, bankruptcy cases are either involuntary. In voluntary bankruptcy cases, which account for the overwhelming majority of cases, debtors petition the bankruptcy court. With involuntary bankruptcy, rather than the debtor, file the petition in bankruptcy. Involuntary petitions are rare and are used in business settings to force a company into bankruptcy so that creditors can enforce their rights. Except in Chapter 9 cases, commencement of a bankruptcy case creates an "estate." The debtor's creditors must look to the assets of the estate for satisfaction of their claims. The estate consists of all property interests of the debtor at the time of case commencement, subject to certain e
Cayman Islands bankruptcy law
Cayman Islands bankruptcy law is principally codified in five statutes and statutory instruments: the Bankruptcy Law the Companies Law the Companies Winding Up Rules 2008 the Insolvency Practitioners' Regulations 2008 the Foreign Bankruptcy Proceedings Rules 2008These are supplemented by a number of practice directions of the Cayman Islands courts and a wide body of case law. Most of the recent emphasis of bankruptcy law reform in the Cayman Islands relates to corporate insolvency rather than personal bankruptcy; as an offshore financial centre, the Cayman Islands has more resident companies than citizens, accordingly the courts a large amount of time dealing with corporate insolvency and reorganisation. Because a large number of Cayman Islands are listed on stock exchanges in major financial centres, number of Cayman Islands corporate bankruptcies have generated a high profile internationally. Bankruptcy of individuals is referred to as "personal bankruptcy" in the Cayman Islands, whereas the bankruptcy of corporations is referred to as "corporate insolvency".
The relevant statutes deal with both separately, although there are some provisions which are common to both. A single creditor or two or more creditors who are owed an amount not less than CI$40 may present a petition to the court against a debtor for a declaration of bankruptcy if the debtor has committed one or more "acts of bankruptcy". An act of bankruptcy means: the debtor has made a general assignment of his property to a trustee or trustees for the benefit of creditors, but it is a requirement that: the alleged act of bankruptcy must have occurred within six months before the presentation of the petition. A company may enter winding up either voluntarily, or pursuant to an order of the court. If a company enters voluntary winding up the directors are required to make a determination of solvency. Any person may act as liquidator in a solvent voluntary winding up. However, if the directors are not able to make a determination of solvency, or if upon the application of a creditor to the court it is shown that either the company is or is to become insolvent.
In addition to voluntary liquidation, a company may be wound up by the court if: the company has passed a special resolution requiring the company to be wound up by the court. A company is deemed to be unable to pay its debts if: a creditor in a sum exceeding CI$100, has served a statutory demand on the company, the company has failed to pay the sum within 21 days.
Hong Kong insolvency law
Hong Kong insolvency law regulates the position of companies which are in financial distress and are unable to pay or provide for all of their debts or other obligations, matters ancillary to and arising from financial distress. The law in this area is now governed by the Companies Ordinance and the Companies Rules. Prior to 2012 Cap 32 was called the Companies Ordinance, but when the Companies Ordinance came into force in 2014, most of the provisions of Cap 32 were repealed except for the provisions relating to insolvency, which were retained and the statute was renamed to reflect its new principal focus. Under Hong Kong law, the term insolvency is used with reference to companies, bankruptcy is used in relation to individuals. Personal bankruptcy is regulated by the Bankruptcy Act; the objectives underpinning Hong Kong insolvency law have been described as follows: A company may go into winding up either voluntarily or by order of the court. A company enters voluntary winding up by passing a special resolution to appoint a liquidator.
If the company is solvent when it enters voluntary winding up it is said to be in members' voluntary winding up, if it is insolvent it is said to be in creditors' voluntary winding up. A company may be wound up by the courts on several grounds; these are: the company has by special resolution resolved that the company be wound up by the court. In practice the most important grounds tend to be insolvency and equitable winding up. Just and equitable winding up is unrelated to the solvency of the company. A petition to the court for the winding up of a company may be presented by the company itself, or by any creditor or creditors, contributory or contributories or the trustee in bankruptcy or the personal representative of a contributory. For these purposes a contributory broadly means a shareholder or other type of member of the company. Liquidation is a class right, so the court will not make an order upon the application of a creditor if it is opposed by a majority of creditors; however the court may give lower weight to creditors who are connected to the company as either directors or shareholders when considering what is in the best interests of the creditors as a whole.
If the court makes an order winding up the company any disposition of the property of the company and any transfer of the company's shares made after the commencement of the winding up, is, unless the court otherwise orders, void. However the commencement of winding up is deemed to relate back to the time when the petition was presented. Accordingly, all dispositions of property or transfers of shares made between the time of the lodging of the petition and the making of the order are set aside unless the court orders. Further, when a winding up order has been made no action or proceeding may be commenced or proceeded with against the company except by leave of the court; however this will not prevent a secured creditor from enforcing its security through an out of court process. Where a secured creditor wishes to enforce their security through court action, leave will be granted; the test for insolvency under Hong Kong law is. A company is deemed to be unable to pay its debts in the following circumstances: if a creditor, by assignment or otherwise, to whom the company is indebted in a sum due equal to or exceeding the specified amount, has served on the company, by leaving it at the registered office of the company, a demand under his hand requiring the company to pay the sum so due, the company has for 3 weeks thereafter neglected to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor.
Where a company is deemed to be unable to pay its debts, this has a number of other effects in addition to the ability for a creditor to present a petition to wind it up. It means that the directors are expected to discharge their duties in the best interest of the company's creditors rather than its shareholders. Once a liquidator is appointed the company is said to be in winding up; the duty of the liquidator is to take possession and control of all of the assets which the company is beneficially entitled to, sell them, distribute the proceeds among the creditors in accordance with the statutory scheme of priorities. The liquidator has wide powers, including the power to to bring or defend any action or other legal proceeding in the name and on behalf of the company, to carry on the business of the company, so far
United Kingdom insolvency law
United Kingdom insolvency law regulates companies in the United Kingdom which are unable to repay their debts. While UK bankruptcy law concerns the rules for natural persons, the term insolvency is used for companies formed under the Companies Act 2006. "Insolvency" means being unable to pay debts. Since the Cork Report of 1982, the modern policy of UK insolvency law has been to attempt to rescue a company, in difficulty, to minimise losses and distribute the burdens between the community, employees and other stakeholders that result from enterprise failure. If a company cannot be saved it is "liquidated", so that the assets are sold off to repay creditors according to their priority; the main sources of law include the Insolvency Act 1986, the Insolvency Rules 1986 ), the Company Directors Disqualification Act 1986, the Employment Rights Act 1996 Part XII, the Insolvency Regulation 1346/2000 and case law. Numerous other Acts, statutory instruments and cases relating to labour, banking and conflicts of laws shape the subject.
UK law grants the greatest protection to banks or other parties that contract for a security interest. If a security is "fixed" over a particular asset, this gives priority in being paid over other creditors, including employees and most small businesses that have traded with the insolvent company. A "floating charge", not permitted in many countries and remains controversial in the UK, can sweep up all future assets, but the holder is subordinated in statute to a limited sum of employees' wage and pension claims, around 20 per cent for other unsecured creditors. Security interests have to be publicly registered, on the theory that transparency will assist commercial creditors in understanding a company's financial position before they contract; however the law still allows "title retention clauses" and "Quistclose trusts" which function just like security but do not have to be registered. Secured creditors dominate insolvency procedures, because a floating charge holder can select the administrator of its choice.
In law, administrators are meant to prioritise rescuing a company, owe a duty to all creditors. In practice, these duties are found to be broken, the most typical outcome is that an insolvent company's assets are sold as a going concern to a new buyer, which can include the former management: but free from creditors' claims and with many job losses. Other possible procedures include a "voluntary arrangement", if three quarters of creditors can voluntarily agree to give the company a debt haircut, receivership in a limited number of enterprise types, liquidation where a company's assets are sold off. Enforcement rates by insolvency practitioners remain low, but in theory an administrator or liquidator can apply for transactions at an undervalue to be cancelled, or unfair preferences to some creditors be revoked. Directors can be sued for breach of duty, or disqualified, including negligently trading a company when it could not have avoided insolvency. Insolvency law's basic principles still remain contested, its rules show a compromise of conflicting views.
The modern history of corporate insolvency law in the UK began with the first companies legislation in 1844. However, many principles of insolvency are rooted in bankruptcy laws that trace back to ancient times. Regulation of bankruptcy was a necessary part of every legal system, is found in the Hammurabi Code, the Twelve Tables of the Roman Republic, the Talmud, the Corpus Juris Civilis. Ancient laws used a variety of methods for distributing losses among creditors, satisfaction of debts came from a debtor's own body. A debtor might be all three. In England, the Magna Carta 1215 clause 9 set out rules that people's land would not be seized if they had chattels or money to repay debts; the Bankruptcy Act 1542 introduced the modern principle of pari passu distribution of losses among creditors. However, the 1542 Act still reflected the ancient notion that people who could not pay their debts were criminals, required debtors to be imprisoned; the Fraudulent Conveyances Act 1571 ensured that any transactions by the debtor with "intent to delay, hinder or defraud creditors and others of their just and lawful actions" would be "clearly and utterly void".
The view of bankrupts as subject to the total will of creditors, well represented by Shylock demanding his "pound of flesh" in Shakespeare's Merchant of Venice, began to wane around the 17th century. In the Bankruptcy Act 1705, the Lord Chancellor was given power to discharge bankrupts from having to repay all debts, once disclosure of all assets and various procedures had been fulfilled. Debtors' prison was a common end. Prisoners were required to pay fees to the prison guards, making them further indebted, they could be bound in manacles and chains, the sanitary conditions were foul. An early 18th century scandal broke after the friend of a Tory MP died in debt prison, in February 1729 a Gaols Committee reported on the pestilent conditions; the basic legislative scheme and moral sentiment remained the same. In 1769, William Blackstone's Commentaries on the Laws of England remarked it was not justifiable for any person other than a trader to "encumber himself with debts of any considerable value."
And at the end of the century, Lord Kenyon in Fowler v Padget reasserted the old sentiment that, "Bankruptcy is considered a crime and a bankrupt in the old laws is called an offender." Since the South Sea Company and stock market disaster in 1720, l