, 1841-08-21
ABSTRACT OF THE BANKRUPT
BILL,
As 1T PASSED THE SENATE.

Ihe FIRST section establishes i uniform sys
tenn Of Bankrupt throughout the United Sta.
les, and provides that all persons owing debts
who shall, by petition, setting forth a lsi
of their creditors, The amount due each, witt
an inventory Of their property Of any kind
verified by oath. apply TO the proper court
shall be deemed Bankrupt. All persons be
ing merchants, or retailers, all bankers. fac.
tors, brokers, underwriters, or marine insu.
rers, owing not less than $4,000. shall be liza.
bic TO become bankrupts. and may, OIL peti
ton of one or more of their creditors, to
whom they owe not less ti!an $500, be 50
declared in the following cases, TO with
case of departure from the State, with intent
10 defraud; of having procured himself TO
be arrested. or having removed goods for con-
cealment, or having fraudulenily assigned.
ANY such person. however, may have 4 trial
by Jury 10 ascertain the facts.
The second section declares all future pay
.9nents made in contemplation Of bankrupt
cy, or TO prefer any creditor, fraudulent and
void, and the person making them shall re-
ceive no discharge. So in case OF a volun-
{ sbankrupt--if he secures any preference
10 one creditor over another, in contempla-
lion Of the passage of this law, he shall not
receive a discharge, unless a majority Of the
creditors assent TO it.
BY section. third, all property, of every
description, OF every person declared a bank
rupt except as is hereinafter provided, shall
be ipso facto Invested out Of the bankrupt,
and the same shall be vested in such as.
signee as shall he appointed by the Court
suits pending by the bankrupt shall be con-
,inued by the assignee, and no suit by or a.
gainst an assignee shall abate by death Of
said assignee--except such necessary house
hold and kitchen furniture Of the bankrupt,
Us the assignee shall designate, having refer.
ence in the amount 10 the family and condi-
ton OF the bankrupt, but in no cjse to exceed
in value $500, and also the necessary wear
ing apparel. On exception being taken to
the determination Of the assignee, the matter
is TO be decided by the court.
The fourth section provides that every
bankrupt who faithfully complies with the
provisions of the act shall be entitled to a
full discharge from all his debts, and a cert,-
ficate to that effect granted him; not, how
ever, within 60 days of the decree being
granted, nor ill 30 days notice shall have
been given to all the creditors to appear and
show cause why the certificate should not
be granted. Such bankrupt shall at all times
be subject to examination orally, or upon
written undergraduates. befole such court, on
oath, in all matters relating to such bankrupt
CIV, which are necessary for the purposes of
justice. If in any case of bankruptcy, a
majority, in number and value, of the cred
itors who shall have proved their debts, shall
at the time of hearing of the petition for a
discharge, file their written dissent to the al
lowance of a discharge and certificate 10
such bankrupt, or If, upon such hearing, a
discharge shall not be decreed TO him, he may
demand a trial by jury, upon a proper issue
10 be directed by the court, or he NAV APP
peal from that decision TO the Circuit Court.
And If, upon a full hearing, it shall be found
by the court or jury that the bankrupt has,
in all things, complied with the acquisitions
of this act, the court shall decree his dis
charge.
Section fifth provides that creditors COM
ing IN and proving their claims shall be paid
pro rata, and no preference shall be given
except for debts due 10 the United States,
and laborers in the service Of the bankrupt,
when those Of the latter shall not exceed
-o$o' DSDto nOI uuS ~ d iutuic udy Sildil
have their value asceriained and allowed.
The sixth section gives the District Court
jurisdiction in all matters arising under this
act. The Court to regulate the forms of
proceeding and the fees.
The seventh section provides that all pro.
ceedings shall take place in the district where
the bankrupt resides.
By section eighth the Circuit Court has
concurrent jurisdiction with the District,
Court, of suits brought by the assignee a.
gainst persons claiming an adverse interest,
or bysuch persons against the assignee touch
ng any property or rights Of properly OF
the bankrupt transferable to or vested in the
assignee; all such suits barred after two
years from the date of the bankruptcy.
Section ninth provides that all sales by
the assignee, shall be made as ordered by the
Court, and all assets paid INTO Court within
sixty days Of the time Of their receipt, and
the assignee shall give bonds for the faithful
discharge Of his duties.
Section tenth requires the collections or
assets to be, made as speedily as the interests
Of the CREDITORS will allow, and a distribu-
ton Of them to be made every six months,