Rutland herald. [volume] (Rutland, Vt.) 1823-1847, 1841-09-07
OUTLINE or THE BANKRUPT LAW.

Uko may Jeoome a voluntary Bankrupt All
persons residing within The United States.
debt. winch shall not have been crea-
ted n consequence Of a detalcatIon as a pub
lc officer, or as an executor, administrator,
guardian, or trustee, or while acting 10 a f.
duciary capacity, who shall be unable TO
meet their engagements, may become volun-
tarN bankrupt-.
Uho an Involuntary bankrupt an pers ons
buying and selling articles Of merchandise, all
bankers, factors, brokers, underwriters or ma
rine Insurers,owing not less than two thousand
dollars, shall be liable 10 become bankrupt at
the instance of creditors.
IN iohai cdteH Whenever any such person
shall leave the State. Territory, or District Of
their residence, with intent TO defraud his
creditors, or shall willingly or fraudulently
cause himself TO be arrested: whenever he
shall procure any process OF law 10 hold his
real or personal estate, or shall remove, con-
ceal, or convey any personal property TO avoid
process Of law, Is liable to be made a bankrupt
Hoe may a nan become a voluntary bdnkrtpR
The debtor must declare by petition, on oath
or affirmation ,his inability TO meet his engage
menis; at the same mentioning each creditor,
his residence, the amount due him, together
with an accurate inventory of his property of
every name, kind, or description, and the STU
alton 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 tins petition must be
published in some newspaper within the Dis
trict, that all Interested persons may appear
and show cause, if any they have, why the de-
cree should not be granted.
Hoe made intotuntary Jaakrupts? Persons
liable to become involuntary bankrupts, may
be so decrced in any one oithe cases above
mentioned, upon the petition of one or more
creditors whose clam or claims are not less
than five hundred dollars.
How fried? Any person, so declared a bank
rupt, may within ten days thereafter, petition
the Court for n trial Of the fact of bankruptcy
by q Jury; otherwise the decree shall be deem
ed final and conclusive.
Consequences of decree ofbdnkruptcy. From
the time of the decree, all the property and
rights of property of every kind, become at
once Invested out of such bankrupt, and vest
ed in such assignee as the court may from time
to time appoint, as fully, completely and en-
tirely, a. they were previously possessed by
the bankrupt; and the said assignee may APP
pear IN all legal proceedings respecting the
same, as the bankrupt could.
Property excepted. The bankrupt may re.
tain the wearing apparel of himself, wife and
children, and such necessary articles as the
assignee shall designate, having reference tC
the family, condition and circumstances of tic
bankrupt, but not to exceed the sum Of three
hundred dollars.
Requisites for a discharge ofhe bankrupt. |
any bankrupt, in contemplation of bankrupt
cy, makes any disposition of property or agree
ment in order to give any creditor or class o
creditors a preference, or with any person no
a bona-hde creditor, or purchaser for a valu
able consideration, the same Is utterly void
and a fraud upon this Act, and incapaciatc
him from receiving a discharge under the Act
All bona-ide dealings, however, made tw
months preyioustothe petition ARE not effected
T if the other party to such dealings had no nc
tice of a prior act Of bankruptcy, or ofihe in
/ |tention 10 become Il bankrupt under this Acr
:. Neither can a bankrupt receive a dlscharg
y If he has, subsequent to January LIST, 1881, c
at any time, in contemplation of the passag
n of this law, given or secured, by assignmer
y or otherwise, any preference to one creditc
n over another, unless a majority IN interest
!. the creditors not preferred, assent thereto.
1t l. further requisite that the bankrupt sha
70 bona-fidc surrender all his property and RICH
70 of property with the exception above mention
ed, FOR the benefit of his creditors; shall ODE
all the orders and directions passed by ii
- Court, and comply with all the acquisitions
- the Act, tn cntitlc him 10 a discharge. Al
: even then, # a majority in number and Walt
Of his creditors who have proved their debt
shall file their written dissent therefor iftl
;, Court shall decide against him, he cannot
"A discharged, unless IT shall appear TO the sat
IN faction Of the Circuit Court, on appeal, or
II. a Jury, that the bankrupt has made a full d
70 closure and surrender ofhis estate, and in
"a things CONFIRMED to the directions of the A
1t Also ninety days must clap-e after the
cree of bankruptcy, and seventy days mott
4 in some newspaper must he gwen TO all Gro
itors who have proved their debts. to app,
-, and oppose the discharge, if they have eau
:. before the certificate Of manumisslon can
80 signed. ANY fraud or wiIlul conccalmcnt
~ pfopcrty.or violation ofthc acquisitions Oft
- Act ~ the orders Of Court. takes AVA
~, night to discharge. 4 merchant, banker,
mo- tor, broker, underwater or marine lnsui
who shall not have kept proper books of
count after the passage OF Tins act, cannot
Il ial-cuarrcd. nor any person who, after its d