have him declared a bankrupt succeeds.

But Mr. Scott's attitude was upbeat: "Let nobody kid you. I'm going to be all right. My head is not down and there will always be a cheerful smile on my face as I go about my business.'' The petition, which is slated to be heard by the Supreme Court on Friday, has been lodged by former United Bermuda Party Cabinet Minister John Irving Pearman with respect to a $140,000 debt.

Mr. Scott, a former UBP Senator, told The Royal Gazette that he is confident an agreement with Mr. Pearman can be reached before the matter comes up in court.

"We'll have it sorted out by the time it goes up on the 6th.'' If Mr. Scott is declared bankrupt, the Bar Association will revoke his licence to practise law until he discharges the debt.

"This process is punitive,'' said the lawyer. But he only had good things to say about Mr. Pearman.

The bankruptcy petition is the last legal recourse for Mr. Pearman after Mr.

Scott failed to meet the terms of a court ordered repayment schedule in 1999.

Mr. Pearman had stood guarantor for a loan given by the Bank of Butterfield in 1994 to Mr. Scott's law firm.

"He (Mr. Pearman) saw me as a young fellow starting a firm and he acted to help,'' Mr. Scott said. "I know he has been generous to a lot of people. I do not know what is in his heart but he's had some dreadful experiences.'' Mr. Scott added that his law practice is on the verge of establishing a healthy cash flow and he can now make an "honest proposal'' to Mr. Pearman.

"Circumstances have changed significantly because of my diligence in getting my law firm back on its feet,'' said Mr. Scott, who vowed to repay every penny of the debt.

Larry Scott