Sequestration

[Chris Paton]

Hi everyone,

I've found the following from the Edinburgh Gazette on my great great grandad's sequestration. can someone explain what is happening here, i.e. what is a composition, and what did John agree to submit for their perusal? Thanks, Chris.

THE Estates of JOHN BROWNLEE M'FARLANE,
Tailor and Clothier, Nairn, were Sequestrated on
the 21st day of August 1878, by the Sheriff-Substitute of
Nairnshire.
The first Deliverance is dated 21st August 1878.
The Meeting to elect the Trustee and Commissioners
is to be held at twelve o'clock noon, on Saturday the 31st
day of August 1878, within Anderson's Hotel, Nairn.

A Composition may be offered at this Meeting ; and to
entitle Creditors to the first Dividend, their oaths and
grounds of debt must be lodged on or before the 22d
day of December 1878.

A Warrant of Protection has been granted to the Bankrupt.
All future Advertisements relating to this Sequestration
will be published in the Edinburgh Gazette aloue.-
DONALD FRASER, Solicitor, Nairn,
Agent.



SEQUESTRATION of JOHN BROWNLEE M'FARLANE,
Tailor and Clothier, Nairn.
CHARLES BAIN MACKINTOSH, Merchant, Nairn,
has been elected Trustee on the Estate; and
William Nicol, Grocer, Nairn, Peter M'Intyre, Grocer,
Nairn, and George Stewart, China Merchant, Nairn,
have been elected Commissioners. The Examination of
the Bankrupt will take place within 'the Sheriff Court
House, Nairn, on Tuesday the 24th day of September
current, at twelve o'clock noon. The Creditors will
meet in the Writing Office of Donald Fraser, Solicitor,
Douglas Street, Nairn, on Wednesday the 2d day of
October next, at two o'clock afternoon.

At the Meeting at which the Trustee was elected the
Bankrupt offered a Composition of One Shilling per
pound on his debts, payable one month after his final
discharge, with security for payment of the same;
which offer and security were entertained for consideration,
and will be decided upon at the said Meeting to
be held on 2d October 1878.

C. B. MACKINTOSH, Trustee.
llth September 1878.

[Kathy]

Sequestration -- the act of seizing property from the owner under process of law for the benefit of creditors.

Kathy

[Chris Paton]

Hi Kathy,

Thanks, but it's more the actual process of what is going in the detail that I am interested in - what is a composition, a warrant of protection etc? What is the difference between the role of the Trustee and that of the Commissioners etc. Exactly how did the process of the sequestration actually work, and for how long?

Thanks

Chris

[paddyscar]

Hi Chris: Legal minds visit quite often, so you'll probably get some real help soon.

From http://www.dsl.ac.uk/dsl/
Compositioun, -icioun, n. Also: -itioune, -icioune, -ycioune; -ition, -icion(e, -ission(e. [ME. (Chaucer), OF. composition, L. compositio.]
1. An agreement between parties for the settlement of some dispute, disagreement, loss or damage, or other matter of importance.

Deliverance
2. Formal decision or judgement in a matter.

The warrant probably ensures that John does not dispose of the assets without addressing his debts; and that no one creditor will be allowed to force settlement of an individual claim without regard for other creditors.

Frances

[AnneM]

Hi

Bankruptcy law is not really my thing. However I do know that the trustee in sequestration was/is the person appointed to administer the bankrupt person's estate and that the bankrupt was obliged to turn over any income he had to him for payment of his debts after the most minimal living expenses. The commissioners must have been the people appointed along with him to make investigation into the assets which the debtor held which were available for payment of his creditors.

A composition is an arrangement to pay a certain amount of the debt in exchange for the bankrupt being discharged from his bankruptcy. In this case the amount offered seems to have been one shilling in the pound. There are a lot of limits put on an undischarged bankrupt including if my memory serves an inability to act as a director of a company.

If you owed more than you had assets to cover you were 'notour bankrupt' and once you knew you are in this state it was an offence to continue to trade.

I thought I had seen a book on bankruptcy and sequestration on husband's shelves but having just had a rake around have decided that there is nothing there at the moment which covers the older law. The most recent bankruptcy legislation is not of much use in this situation. There was a bankruptcy act then but I'm not sure of the scheme that it involved.

The warrant for protection would I guess protect the debtor from any personal demands from his creditors while the sequestration was ongoing.

Anne

Anne

[Chris Paton]

Thanks Ann and Frances, it's much clearer now!

Chris