(1)The bankrupt is guilty of an offence if he has—
(a)in the 2 years before petition, materially contributed to, or increased the extent of, his insolvency by gambling or by rash and hazardous speculations, or
(b)in the initial period, lost any part of his property by gambling or by rash and hazardous speculations.
(2)In determining for the purposes of this section whether any speculations were rash and hazardous, the financial position of the bankrupt at the time when he entered into them shall be taken into consideration.