The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-06-27
OLD VIRGINIA


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OLD VIRGINIA
The following bill passed the Senate on THURSDAY
by vote Of 81 to 10, and was sent 10 the House
A BILL
TO establish a Inform System Of Bankrupfry
throughout he United States.
BE IL enacted by the Senate and House or Represen
tatires Of The United States Of America in Congress
assembled That there be, and hereby is established
throughout the United States, a uniform system OF
bankruptcy, as follows; All persons, whatsoever, re-
siding in any State District Territory Of the Uni
ted States owing debts who shall by petition setting
forth TO the best OF his knowledge and belief list OF
his their creditors, their respective places of resi-
dcnce and the amount due to each together with an
accurate inventory of his their property rights
and credits of every name kind, and description and
the location and situation OF each and every parcel
and portion thereof verified by oath or il conscen,
tiousy scrupulous OF taking oath by solemn afr-
nation apply to the proper court, hereinafter men
toned for the benefit OF this act and therein declare
themselves TO be unable to meet their debts and en-
gagemens, shall be deemed bankrupts within the pur-
Of this act, and may be declared accordingly
by decree of such court; all persons being mer-
chants, using the trade of merchandise all retailers
of merchandise and all bankers factors brokers ul
der writers, marine insurers owing debts 10 the
amount Of not less than two thousand dollars shall bc
liable to become bankrupts within the true intent and
meaning OF this act and may upon the petition of one
Of their creditors, TO whom they owe debts
amounting in the whole to less than five hundred
dollars to the appropriate court be declared accord
lngly, in the following cases TO wit whenever such
person, being merchant, actually using the trade
OF merchandise or being retailer of merchandise
being banker, factor broker underwater or marine
insurer shall depart from the State District or Terri
tory, Of which he is an inhabtant with intent to de
fraud his creditors, shall willingly fauduently
procure himself to be arrested, his goods and chat
fats Iur fnn Iaa I'll
questered, taken in execution shall remove his
goods chatels, and effects, conceal them to pre-
their being levied upon taken in execution OF
by other process, or make any fraudulent conveyance
assignment, sale, gift, other transfer of his lands
enements, goods or chaftes or evidences of debt
Prorided, horrerer, That any person, declared
bankrupt, at the instance of creditor may, at his
election by petition TO such court within DAYS az
ter its decree be entitled trial by jury before such
court 10 ascertain the fact of such bankruptcy; or ii
such person shall reside at great distance from the
place of holding such court the said judge his dis
creon, may direct such trial by jury to be had in the
county of such persons residence, in such manncf
and under such directions, the said court may pre-
scribe and give; and all such decress passed BY such
court, and not re-cxamned shall be deemed final
and conclusive to the subjcct-matter thereof
SEC. : Andb IL further enacted, That all future
payments, securities, conveyances transfers of pro
perty, or agreements made given by any bankrupt
in contemplation of bankruptcy and for the purpo,r
of giving any creditor endorser surety or other per
son, any preference or priority the general cred
tors OF such bankrupts; and all other payments :,
curitles conveyances transfers of property agree
ments made given by such bankrupt in contenpll-
ton of bankruptcy, TO any person persons whatever
not being bona fde creditor or purchaser for yau-
able consideration, without notice shall be deemed al
ery void, and fraud upon this and the assignee
under the bankruptcy shall be entitled to claim SUI
for recover, and receive the same part of the
sets of the bankruptcy and the person making such
unlawful preferences and payments shall receive
blSrl arlpar thnp nT A..
That all dealings and transactions by and with any
bankrupt bona fde made and entered into than
two months before the petition filed against him, or By
him shall not be invalidacd affected by this act
Prorided That the other party TO any such dealings
or transaction had notice OF prior act of bank
rupicy of the intention Of the bankrupt take the
benefit OF this act And in case il shall bc made 10
appear the court in the course of the proceedings in
bankruptcy that the bankrupt his application being
voluntary, has subsequent the first day of January
last, or at any other time in contemplation of the pas
sage of n bankrupt law, by assignments or otherwise
given or secured any preference TO creditor over
another, he shall not receive n discharge unless tho
same be asscnted to by majority in interest Of those
OF his creditors who have not been preferred Ind
prorided, also, That nothing in this act contained
shall be construed 10 annul destroy, or impair any
lawful rights of married women, or minors or any
liens, mortgages other securities property real
or personal which may be valid by the laws Of the
States respectively, and which are not inconsistent
with the provisions of the second and fifth sections Of
this act.
SIC. 3 Declares that all the property Off bankrupt
shall vcs IN the assignee, BY virtue of the decree Of
the court that declares him bankrupt except some
clothing and few articles of furniture and also me
scribes the power Of assignees
SEC. 4 And be IL further enacted, That every bank
rupt, who shall bona idc surrender all his property
and rights of property with the exception before men
toned, for the benefit of his creditors and shall iuy
comply with and obey all the orders and direction.
which may from time 10 time be passed by the proper
court and shall otherwise conform 10 all the other re-
QUESTIONS Of this act unless majority in number and
value Of his creditors who shall file their written dis
sent thereto, shall be entitled full discharge from
all his debts 10 be decrecd and allowed by the court
which has declared him bankrupt, and certificate
thereof granted to him hy such accordingly upon
his petition filed for such purpose; such discharge and
ninety days from the decree Of bankruptcy nor unl
after seventy days notice in public newspaper
designated hy such court to all creditors who hatr
proved their debts and other persons in interest TO aI
pear at particular time and place to show cause why
such discharge and certificate shall not be granted 1t
which time and place any such creditors or other per
in interest may appear and contest the ricl Of
the bankrupt thereto Prorided That in all case,
where the residence of the creditor known
on him, personally, or by letter addressed 10 him a.
his known usual place Of residence shall be prescrb
ed by the court in their discretion shall seem proper
having regard to the distance which the creditor
sides from such court And if any such bankrupt