The Middlebury people's press. [volume] (Middlebury, Vt.) 1841-1843, 1841-09-14
BY AUTH DIRTY.
LAWS OF THE UNITED STATES
PASSED AT THE FIRST SESSION OF 9TH. CONGRESS
+ PUBLIc.-No. 9.

PUBLIC.-No. 9.
AN ACT to establish a uniform system of
Bankruptcy throughout the United States.
Be 1t enacted by the Senate and House of Rep
resentatires of the United States Of america in
Congress assembled, That there be and hereby is,
established throughout the United States a
uniform system of bankruptcy, as follows: All
persons whatsoever, residing in any State, Dis
trict, or Territory Of the United States, owing
debts, which shall not have been created in
consequence Of defalcation as public officer,
or as executor, administrator, guardian, or
trustee, or while acting 10 any other fduciary
capacity, who shall, by petition. setting forth,
to the best ofhis knowledge and belief a list of
his or their creditors their respective places of
residence, and the amount due to each, togeth-
err with an accurate inventory of his or their
property, rights. and credits, of every name,
kind, and description, and the location and
situation of each and every parcel and portion
thereof verified by oath, or, if conscientiouslv
scrupulously of taking an oath. by solemn af.
firmation, apply TO the proper court, as herein.
after mentioned, for the benefit of this act, and
therein declare themselves 10 be unable to meet
their debts and engagements, shall be deemed
bankrupts within the purview of this act, and
may be so declared accordingly by decree of
such court. All persons, being merchants, or
using the trade of merchandise, all retailers of
merchandise, and all bankers factors, brokers,
underwriters, or marine insurers, owing debts
10 the amount of not less than two thousand
dollars. shall be liable TO become bankrupts
within the true intent and meaning of this act,
and may, upon TIE petition of one or more of
their creditors TO whom they owe debts amoun-
ting in the whole 10 not less than five hundred
dollars, TO the appropriate court be so declared
| accordingly, in the following cases, to wit ::
whenever such person, being merchant, or
actually using the trade of merchandise, or
being a retailer of merchandise, or being
banker, factor. broker, underwater, or marine
insurer, shall depart from the State, District.
or Territory of which he is an inhabtant, with
intent TO defraud his creditors; or shall con-
ceal himself to avoid being arrested; or shall
wilingly or fraudulently procure himself TO be
| arrested, or his goods and chattles, lands, or
ienements, 10 be attached. dIstrained. seques-
tered, or taken in execution or shall remove
his goods, chattles, and effects, or conceal them
to prevent their being levied upon, or taken in
execution, or by other process; or make any
fraudulent conveyance, assignment, sale, gift,
or other transfer of his lands, tenements, goods,
or chattles, credits, or evidences of debt
Provided, however, That any person, so de-
clared bankrupt at the instance of creditor,
may. at his election, by petition to such court
within ten davs after its decree, be entitled TO a
trial by jury before such court, 10 ascertain the
fact of such bankruptcy; or if such person shall
reside at great distance from the place oil
holding such court, the said Judge, in his dis
erection, may direct such trial by jury to be had
in the country of such PERSONS residence, iE
such manner and under such directions as the
said court may prescribe aud give; and al
such DEGREES passed by such court. and not sc
re-examined, shall be deemed final and con
elusive as to the subject. matter thereof:
Sec. 2. find be 1t further enacted, That al
future payments, securities, conveyances, o.
transfers of property, or agreements made o.
given by any bankrupt in contemplation o
bankruptcy, and for the purpose of giving any
creditor, endorser. surety, or other person an
preference or priority over the general creditor
of such bankrupt; and all other payments, Sc
curities, conveyances, or transfers of propert,
or agreements made or given by such bank
rupt in contemplation of bankruptcy, to an,
person or persons whatever, moi being bop
fide creditor or purchaser for valuable con
sideration, without notice, shall be deemed ut
terly void, and fraud upon this act; and tn
assignee under the bankruptcy shall be entities
to claim, sue for, recover, and receive the SAM
as part of the assets of the bankruptcy; ant
The person making such unlawful preference,
and payments shall receive no discharge unde
the provisions of this act {: Provided, That al
dealings and transactions by and with am
bankrupt, bona fide made and entered into more
than two months before the petition filed a
gainst him, or by him, shall not be invalidatec
or affected by this act Provided, That tIt
other party TO any such dealings or transaction.
} had no notice of prior act of bankruptcy, O.
the intention Of the bankrupt to take the benefi
of this act. And in case it shall be made t.
appear 10 the court, in the course of the pro
,, ceedings in bankruptcy, that the bankrupt, hi.
application being voluntary, has, subsequent t.
the first day of January last, or at any othe
) time, in contemplation of the passage of ;
bankrupt law, by assignments or otherwise
given or secured any preference to one creditor
over another, he shall not receive discharge
unless the same be assented to by majority il
interest of those of his creditors who have
not been so preferred And provided, also
That nothing in this act contained shall b.
construed ito annul, destroy, or impair any
lawful rights of married women or minors, o.
any liens, mortgages or other securities OIL
property, real or personal, which may be vail,
by The laws of the State respectively, and which
are not inconsistent with the provisions of tn,
second and fifth section of this act
! Sec. 8. find be It further enacted, That all tn,