Mobile daily commercial register and patriot., 1841-09-01
AN ACT - E, e,s,tt.ba msfgM g,ffm af Bantrupeg nraHsh- tf ,,t tI. ',,.y Nj.ft4

s.stcm ni Bankiurtc, as lulln s: All persons Wlal sne,rr res ding in an, State, Distinct or Territory o the lniiad Stdies, owing ebls, winch shall not have been cieatrd m consequence ot a deatatIun as a public officer, ur eNechtur. adninlsiiator, guar dian, or trustee, while acting in any other hdn cHirN capacity, who shall, b, petition, setting forth,
 To the k tst ui his knon ledge and belief, list U hls or their creds their respective places ot residence anl the amount due Ia each, together with all aeca- raie inventory of his or their property, rights, and credits. of ever. name, kind, and description, and the location and situation oi each and every parcel and portion thereof verified by oath, or, if consclen- tiouslS scrupulous oi taking oath by solemn ahr- nation, apply to the proper court, as hereinafter mentioned for the benefit of this ac, and therein tie clare themselves he unable to meet their debts and engagements, shall be deemed bankrupts within the pur,icw of this act, and may be so declared accor
 dingy by decree of snch court All persons being merchants or using the trade of merchandl2e, all retailers ot merchandise, and all bankers, factors, brokers, underwriters, or marine insurers owing debts to the amount of less than two thousand dollars, shall be 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
 not less than five hundred dollars to the appropriate court, be declared accordingly, Tn the following cases, To wit: whenever such person, being mer-
 chant, actually using the trade of merchandise, or
 being retailer of merchandise, or being a banker,
 hCtOf, Dfokef, hnuefNfller, or maTlne insurer, small
 depart from the State, District or Territory, of
 which he is an inhabant with intent to delraud his
 creditors; or shall conceal himself avoid being ar
 rested shall willingly or iraudently procure him
 self to be arrested, or his goods and chattels, lands,
 or enements, to be attached, dstlained, sequester
 ed, ar taken in execution; shall remove his goods, chates and effects, or conceal them to prevent their
 being levied upon, taken in execution, by other
 process make fraudulent conveyance, assignment,
 sale, gilt other transfer of his lands tenements
 goods, or chates, credits or evidences of debt: Pro-
 vided however, That any person so declared a
 bankrupt, at the instance of creditor may, at his
 election, by petition to such cOurt within ten days after the decree, be entitled trial by jury before
 such court to ascertain the fact of such bankruptcy,
 or if such person shall reside great distance from
 the place of holding such court, the said udge in his
 discretion, may direct such trial by jury to be had in
 the county of such persons residence in such manner and under such directions the said court may pre- scribe and give and that all such decrees passed by such court, and not re-examined shall be deemed final and conclusive as to the subject matter there of.
 Sec. 2. And be it further enacted That all future payments, securities, conveyances, transfers of property, or agreements made giveR by any bank rupt, in contemplation of bankruptcy, and for the purpose of giving any creditor, endorser, surety, or other person, any preference priority over the ge- neral creditors of such bankrupts and all other pay ments securities convey ances or transfers of pro- perty, or agreements made given by such bank rupt in contemplation of such bankruptcy, to any person or persons whatever, not heinz a bona fide creditor purchaser, for valuable consideration, without notice, shall be deemed utterly void, and fraud upon the act; and the assignee under bank ruptcy shall be entitled to claim, sue for, recover and receive the same part of the assets of the bankruptcy; and the person making such unlawful preferences and payments shall receive no discharge under the provisions of this act; Provided, That all dealing and transactions by and with any bankrupt bona iide made and entered into more than two
 months before the petition filed against him, or by him, shall not be invalidated be affected by this act Provided That the other party any such deal ings or transactions had notice of prior act of bankruptcy, or of the intention of the bankrupt to take the benefit of this act. And in case it shall be
 made to appear the court the course of the pro- ceedings in bankruptcy, that the bankrupt hls appli- cation being voluntary, has, subsequent the first day of January last, at any other time in conte- plation of the passage of bankrupt law. by assign ment or otherwise, given or secured any preference to one creditor another, he shall not receive discharge unless the same be assented to by mao- rity in interest of those of his creditors who have not been 50 preerred And provided, also, That no- thing in this act shall be construed to annul des- troy, or impar any lawful rights of married women minors, or any liens, mortgages, other securi- ties property real or personal which may be valid by the States respectively and which are not ncon- sstent with the provisions of the second and fifth section of this act.
 Sec. 3. And be il further enacted, That all the property, and rights of property, of every name and nature, and whether real personal, or mixed of eye " bankrupt except as is hereinafter provided, who shall, by decree of the proper court, be declared 10 be a bankrupt within this act, shall by mere opera ton of aw pso facto, from the time of such decree
 be deemed to be dvested out of such bankrupt, with out any other act, assignment or other conveyance .l .l..III the same decree, in such assignee as from time to time shall be appointed by the proper court for this purpose; which power of appointment and removal such court may exercise at its discretion, otes quo- ties; and the assignee so appointed shall be vested with all the rights titles, powers and authorities to sell, manage, and dispose of the same and t sue for and defend the same, subject to the orders and di- rectons of such court, fully, to all intents and purposes, if the same were vested in, or might be exercised by such bankrupt before or at the time of his bankruptcy. declared as aforesaid; and all suits in law in equity, then pending, in which such bankrupt is party, may be prosecuted and efend- ed by such assignee to it's final conclusion, in the same way, and with the same effect, as they might have been by such bankrupt and no suit commenced by or against any assignee shall be abated by his death removal from office, but the same may be prosecuted defended by his successor in the same office; Provided, however, That there shall be ex- cepted from the operation of the provisions of this section the necessary household and kitchen furni-
 ure and such other articles and necessares of such bankrupt the said assignee shall designate and apart, having reference in the to the fa- mily, condition and circumstances of the bankrupt hut altogether not to exceed in value, in any case, the sum of three hundred dollars; and, also the wearing apparel of such bankrupt, and that of his wife and children; and the determination of the as- signee in the matter shall, on exception taken be subject to the final decision of said court.
 Sec. 4. And be it further enacted, That every bankrupt, who shall bona tde surrender all his pro- perty, and rights of property, with the exception be- fore mentioned, for the benefit of his creditors, and shall fully comply with and obey all the orders an! directions which may from time to time be passed by the proper court, and shall otherwise conform to all the other requisions to this act, shall (unless majority in number and value of his creditors, who have proved their debts shall file their written dis sent thereio) be entitled full discharge from all his debts, to be decreed and allowed by the court which has declared him to be bankrupt and cer- tcate thereof granted to him by such court accor- dingly upo his petition being filed for that purpose; such discharge and certificate not, however, to be granted until ninety days from the decree of bank ruptcy, nor until seventy days notice in some public new spaper designated by such court to all creditors who have proved their debts, and other persons in interest," toappear at particular time and place, show why such discharge. and certificate shall not be granted at which time and place any such creditors other persons in interest, may appear and contest the right of the fankrupt thereto; Pro- vided That in all cases where the residence of the creditor is known, service him personally or by letter addressed to him at his known usual place of residence, shall be prescribed by the court, as in their discretion shall seem proper, having regard to the distance at which the creditor resides from such court. And if any such bankrupt shall be guilty of any fraud or wiful concealment of his property or rights of property, or shall have preferred any of his creditors contrary to the provisions of this act, or shall wfully omit or refuse to comply with any or ders or directions of such oourt conform to any other requisites of this act, shall in the proceed ings under this act, admit false or fictitious debt against his estate he shall not be entitled to any such discharge or certificate; shall any person, being merchant, banker, factor, broker, under writer or marine insurer, be entitled to any such