Case ID: f-cas_12/html/0269-01.html
Source: Caselaw Access Project
Author: {"author": "PER CURIAM", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Case No. 6,565.
    HOBSON et al. v. MARKSON et al.
    [1 Dill. 421.] 
    
    Circuit Court, D. Kansas.
    1871.
    Bankrupt Act — General Assignments under State Law — Adjudication op Bankruptcy — Collateral Attack:
    1. A previous voluntary general assignment for the benefit of creditors, made in good faith, and valid under the law of the state where •made, will not be sustained against a valid adjudication of bankruptcy.
    2. An adjudication made after the return day, but upon petition and appearance, will be sustained in a collateral inquiry.
    [Cited in Re Bush, Case No. 2,222.]
    [Cited in Re Bush, Case No. 2,222.]
    In bankruptcy.
    Wallace, Pratt, Williams & Wagstaff, for plaintiffs.
    • Britton, Rogers, Hoag & Wheat, for defendants.
   PER CURIAM

(DILLON, Circuit Judge, and DELAHAY, District Judge, concurring).

In sustaining a demurrer to the bill (filed by assignees under a voluntary general assignment against assignees in bankruptcy and the petitioning creditors), the court delivered a written opinion, ruling the following points:

1. A valid adjudication of bankruptcy against a debtor, has the effect to subject him and'his property to the operation of the bankrupt act, notwithstanding a previous voluntary general assignment for the benefit of creditors; and the assignee in bankruptcy as against the assignee under the state law, is entitled to the possession and control of the estate. In re Burt [Case No. 2.210].

[See, also, Cragin v. Thompson, Id. 3,320.]

2. An order of the district court, adjudicating a debtor a bankrupt, made after the return day, but upon á petition of a creditor, and after notice to, and appearance by, the debtor, though it may be irregular, is not void, and cannot be collaterally assailed by his assignees under a previous voluntary assignment.