Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1841-10-21
BANKRUPT LAW.


accompany the Act itself, we presume il will
be more easily understood, and therefore more
acceptable to our readers generally:
OUTLINE OF THE BANKRUPT LAW.
Who may become voluntary Banhrupf (?
All persons residing within the United States,
owing debts which shall not have been Great
ed IN consequence of deialcation as public
officer, or as executor, administrator, guardian
or trustee, or while acting ina fiduciary capa-
city, who shall be unable TO meet their en-
gagements, may become voluntary bankrupts.
Who are Involuntary bankrupts9 All per-
sons buying aud selling articles of merchan-
die, all bankers, factors, brokers. underWSi;
{&@F5 o{hmoaass;and dollars, shall be liable to be-
come bahkruptcd at the instance of credit
ors.
In ohM cases9 Whenever any such per-
son shall leave the State, Territory or District
of their residence, with intent to dcfraud his
creditors, or shall willingly or fraudulently
cause himself to be arrested whenever he
shall procure any process of law to hold his
real or personal estate, or shall remove, con-
ceal, or convey any personal property to a
void process of law, he is liable to be made
bankrupt.
rupt2 The debtor must declare by petition,
on oath or affirmation, his inability to meet
his engagements, at the same time mention
ing each creditor, his residence, the amount
due him, together with All accurate inventory
of his property of every name, kind, or de-
scription, and the situation of the same. This
proceeding shall be had in the Court of the
District where the debtor resides, which Court
has jurisdiction of all cases which can arise
under this Act. Twenty days notice of this
petition must be published in some newspa-
per within the District, that all interested per-
sons may appear and show cause, if any they
have, why the decree should not be granted.
Hoe made involuntary Bankrmpts2 Per-
sons liable to become involuntary bankrupts,
may be SO decreed i'll any one of the cases a.
bove mentioned, upon the petition of one or
more creditors whose claim or claims are not
less than five hundred dollars.
Hoe tried Any person, so declared
bankrupt, may within ten days thereafter, pc
ttion the Court, for u trial of the fact of bank
ruptcy bya jury; otherwise the decree will
be deemed final and conclusive.
Consequences OF a decree of Bankruptcy?
From the time of the decree, all the property
and rights of every kind become at once di-
vested out of such bankrupt, and vested in such
assignee as the Court may from time to time
appoint fully, completely and entirely, as
they were previously possessed by the bank
rupt; and the said assignee may appear in all
legal proceedings respecting the same, as the
bankrupt could.
Property encepted.-Tbe bankrupt may re-
tain the wearing apparel of himself, wife and
children, and such necessary articles as the
assignee may designate, having reference to
the family, condition and circumstances of the
bankrupt, but not over the sum of three hun
bred dollars.
Requisites for discharge of the Bankrupt
If any bankrupt, in contemplation of bank
ruptcy, make any disposition of property or
agreement in order to give any creditor or class
of creditors the preference or with any other
person not bona fide creditor, or purchaser,
for valuable consideration, the same is ut
terly void, and fraud upon this. Act, and inca
pacitates him from receiving discharge under
the Act. All bona fde dealings, however,
made two months previous to the petition,
are not affected, if the other party to such
dealings had no notice of prior act of bank
ruptcy, or of the intention to become a bank
rupt under this Act. Neither can bankrupt
receive discharge if he has, subsequent to
January LIST, lS4l, or at any time in contem-
plation of the passage of this law, given or
secured, by assignment or otherwise, any pre-
ference to one creditor over another, unless Il
majority in interest of the creditors not pre-
fered, assent thereto.
1t is further requisite that the bankrupt shall
bona fide surrender all his property, with the
exception above mentioned, for the benefit of
his creditors: shall obey all the orders and
directions passed by the Court, and comply
with all the acquisitions of the Act, TO enlitle
him to discharge. And even then, if a ma
jority in number and value of his creditors
who have proved their debts, shall file their
written dissent thereto, or if the Court shall
decide against him, he cannot be discharged,
unless it shall appear to the satisfaction OF the
Circuit Court, on appeal, or TO jury, that the
bankrupt has made full disclosure and sur
render of his estates land in all things conform
ed to the directions of the Act.
Also, ninety days must elapse after the de-
cree of bankruptcy, and seventy days notice
Ill some newspaper must be given to all cred
itors who have proved their debts, to appear
and oppose the discharge, if they have cause,
before the certificate of manumission can be
signed. Any fraud or wilful concealment of
property, or violation fthe requisiton OF this
Act or the orders of Court, takes away the
right to discharge. A merchant, banker, fac
tor, broker, underwater, or marine insurer,
who shall not have kept proper books OF ac-
count after the passage of this Act, cannot be
discharged, nor any person who alter ITS
passage shall apply trust funds to his own
use.
Conseguences of The dischdrge-To be