The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-10-26

uclpatlons OF the hour when this =" mortal shall
put on Immortality" and Of that reunion and
mutual recognition in an eternal state, where
The changes of time and the blight of death can
never enter
An abstract Of the General Bankrupt Lar
Passed august, 1871.
l. Uho mdp be Banhrupts ? By sec. lst the
law establishes two kinds of bankruptcy-the
one voluntary, the debtor himself demanding it,
the other compulsory, the ere itor asking the
court to declare the debtor bankrupt We shall
digest the act as regards both in order
First, then, Uho may be a Voluntary Bank
rupt? The act, sec. l, says, all persons re-
siding within the United States unable to meet
their debts and engagements, except those
whose debts have arisen
|. From defalcation as public officer.
2. From defalcatlon as an executor or admi-
nstrator.
3. From defalcation as guardian or ,rus-
tee, or
4. From defalcaton while acting in any other
fduciary capacity.
Secondly. Uho may be compelled 10 be a
Bankrupt The act, Sec l, provides that any
merchant retailer, banker, factor, broker, under
writer, or marine insurer, owing $4,000 and up
wards, may on the petition of a creditor or Gre
ditors to the amount Of $500 be declared bank
rupt, if he has committed any of the following
acts of bankruptcy, viz:
l. If he has departed from the state, district,
or territory in which he resides, with intent TO
deiraud his creditors.
2. If he shall conceal himself 10 avoid being
arrested.
3. If he shall willingly or fraudulently procure
himself TO be arrested, or his property 10 be le-
gally seized for his debts.
A. II he shall remove or conceal his goods 10
get them out of danger Of process.
5. If he shall fraudulently convey or transfer
his lands, goods, credits, or evidences Of debt
Recurring now to voluntary bankruptcy, we
will inquire hotr a person must proceed nho
,eishes 10 be declared bankrupt? Sec. pro-
vides that he must present petition to the pro-
per court, verified under oath or affirmation, set
ting forth list of all his creditors, their respec-
tive places of residence and the amounts due TO
each OF them, together with an inventory of all
their property rights and credits whatever, and
the location and situation of each part thereof !;
in which petition they must further declare
themselves unable 10 meet their debts and en-
gaeements.
Next let us see hol1 should creditors proceed
1rho irish that any debtor should be declared
bankrupt? They also should present petition
to the same court, stating that he owes them to
the amount of $500; that he is such person
declared bankrupt; that he owes at least $4,000;
and that he has committed one of the above
specified acts OF bankruptcy.
On the reception Of every such petition, no.
tice shall be published in one or more Of the pa
pers OF the district, at least 20 days before the
hearing, at the time and place of which all per.
sons interested may appear and show cause
against the decree of bankruptcy-the evidence
at the hearing to be under oath or affirmation,
| n nr b,, uann.ifinn hnfnrn tho 10
missioner, or disinterested judge of the State
where taken.
After the hearing Of such petitions, presented
either by the debtor his creditors, the court by
decree will declare the person petitioning, or
petitioned against, bankrupt.
But any person so declared a bankrupt, at the
instance of a creditor, may have trial by Jury
TO ascertain the fact Of such bankruptcy, il he
petitions the court for that purpose within ten
days after its decree-jf he does not the decree
is final.
II.-THe Decree Of Bankruptcy and its e.
Jects.
BY sec. 3, il is provided that all the property
and rights of property whatsoever of persons
who shall be declared bankrupt shall, pso iacto,
| from the date of the decree, be divested out of
the bankrupt, and vested in an assignee, to be
| appointed by the court, who shall thereupon be
which, till that time, the bankrupt had TO act,
however, under the direction Of the court; ex-
cepling the necessary household and kitchen
furniture, and such other articles and necessaries
Of the bankrupt as the assignee shall designate
and set apart, altogether not to exceed $500
worth in any case, to b. selected according TO
the family, condition, and circumstances of the
bankrupt; y and also the wearing apparel of the
bankrupt and his family shall be excepted and
retained by the bankrupt.
BY sec. 2 it is provided that all future pay
ments or arrangements made by bankrupt in
contemplation of bankruptcy, and for the pur-
pose Of giving any Of his creditors the preference
and all other payments or arrangements by a
bankrupt in contemplation of bankruptcy to any
person not bona fde purchaser for valuabl,
consideration, without notice, shall be deemed
utterly void and the assignee be entitled 10 re-
cover the same "a parts OF the assets Of III,
bankruptcy. But this is not intended 10 inval
date bona iide dealings with the bankrupt done
more than one month before the petition filed b,
or against him, If the other party to them had ne
notice of any intended act of bankruptcy, or o
his intention to take the benefit Of this act