Notour Bankruptcy Law and Legal Definition
Notour Bankruptcy is a concept of English and Scottish law. It is a stage of insolvency in which the debtor has publicly acknowledged insolvency under the statute. The law of notour bankruptcy is mainly statutory. The statute defines it as “ any debtor who, being under diligence by horning or caption, at the instance of his creditors, shall be either imprisoned, or retire to the abbey or any other privileged place, or flee or abscond for his personal security, or defend his person by force, and who shall afterwards be found, by sentence of the lords of session, to be insolvent.
In 1856 the Bankruptcy (Scotland) Act, by which the law of bankruptcy in Scotland is mainly regulated. By this act, notour bankruptcy was constituted :
- 1. By sequestration and
- 2. By insolvency concurring either - (a) with a duly executed charge for payment or (b) with sale of effects belonging to the debtor under a poinding or under a sequestration for rent, or making application for the benefit of cessio bonorum.
Notour bankruptcy continues, in cases of sequestration, until the debtor has obtained his discharge and in other cases until insolvency ceases. This is also termed notorious insolvency.