Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-09-06

debts, shall file their written dissent thereto) he
entitled to full discharge from all his debts, to be
decreed and allowed by the court which has de
cnred him bankrupt, and certificate thereof
granted to him by such court accordingly, upon
his petition filed Tor such purpose such discharge
and certificate not, however, to he granted until
after ninety days from the decree of bankruptcy
nor nnlil alter seventy days notice in some pub.
lie newspaper, designated by such court, TO all
creditors who have proved their debts, and other
persons IN interest, to appear at parl'ch'H"i'ne
AMI pnce, to show cause why such discharge and
certificate shall not he granted at which time and
place any such creditors, Or other persons IN IN
terest, may appear and contest the right of the
bankrupt thereto Provided, That in all cases
where the residence of the creditor is known,
service on him personally or by letter addressed
to him nj his known usual place of residence,
shall be prescribed by the court, in their dis
creton shall seem proper, having regard To the
distance AT which the creditor resides from such
court And if any such bankrupt shall he guilty
OF any fraud or wilul copcealment of his prop
er'y or rights of property, or shall have preferred
any OF his creditors contrary to the provisions Of
this act, or slnll wilfhy omit or refuse comply
with any orders or directions Of such conrt, or 10
conform to ANY other re luiSes of this ret or SHALL
in the proceedings under this act admit false or
fictitious debt against his estate, he shall not he en-
titled to any such discharge certificate nor
shall any person, being II merchant, bunker, fac
tor, broker, underwriters, or marine insurer, be
entitled to any such discharge certificate, who
shall become bankrupt, and who shall not have
| Kept proper books of account after the passage
OF this act nor any person who, alter the passing
OF this act, shall apply trust funds 10 his own
use: Prorided, That no discharge Of any bank
rupt under this act shall release or discharge
any person who may be liable for the same
debt as partner, joint contractor, cndorser, sure
~, or Otherwise, for or with the bankrupt. And
such bankrupt shall ut all times be subject to ex
ANIMATION, orally, or upon written errogatories,
IN ana before such court or any commission np
pointed Ivy the court therefor, on OATH or if con
scIrntously scrnpnlous of taking an oath, upon
his solemn nffrnalion in all matters relating to
such bankruptcy, and his acts and dongs, and his
property and rights OF property, which in the
Judgment OF such court, are necessary any proper
Tor the purposes of justice; and if in any exam
inaton he shall wilfIy and corrupty answer, or
swear or affirm falsely, he shall he deemed guilty of
perjury shall he punishable therefor in like man
ner as the crime of perjury is now punishable by
the laws of the IT, s.; and such discharge aud Ger.
llhcae, when duly granted, shall, in all courts OF
justice, he deemed n full and complete discharge of
all debts, contracts, and other engagements of such
bankrupt, which are proveable under this act, and
shall be aud may be pleaded as full and COM
plele bar TO all suits brought in any court of Judi
catnre whatever, and the same shall be conclusive
evidence of itself in favor OF such bankrupt, un
less the same shall be inpeached for some fraud
or wilfu concealment by him of his property, or
rights OF property, rs aforesaid, contrary TO the
provisions OF this act, on prior reason bile notice
specifying in writing such fraud and conceal
ment aud if, in any case of bankruptcy, u ma
jorty, in number and value of the creditors, who
shall have proved their debts at the of hear
ing OF the petition OF the bankrupt for discharge
as berelnbelore provided, shall at such hearing
file their written dssrn; to the allowance of dis
charge and certificate 10 such bankrupt, or il, upon
I..a. 4
him. the bankrupt may demand trial hy jury up
on proper issue to be directed by the court, at
such time and place AID in snch manner rs the
court may order; or he may appeal from that tie
c>ion, al any time within ten days thereafter TO
the court next TO be held for the same district by
simply entering in the district court, or with the
clerk thereof, upon rccnd, his prayer for an APP
peal The appeal shall he tried nj the first term o
the circuit court alter it he taken unless, for sntii
clent reason n continuance he granted and il may
be heard and determined by sad court summary,
or by jury, nj the option of n bankrupt; and the
creditors may appear and object against u decree
OF discharge and the allowance of tie certificate,
ms herenhelore provided. And if, upon full
hearing of the parties, it shall appear to ilIe salts
faction OF the court, or the Jury shall find, that the
bankrupt has made full disclosure and surrender
of all his estate as by this act required, and has in
all things CONFIRMED the directions thereof, The
court shall make decree OF discharge, and grant
certificate, us provided in luis act.
Sec. 5. find be ii further enacted That all credl-
tors coming in and proving their debts under such
bankruptcy, in the manner hereinafter prescribed
the same being bona fide debts, shall be entitled to
share in the bankrup's property and effects, pro
rata, without any priority or preference whatsoev
er, except only for debts due by such bankrupt TO
the United Suites, and for all debts due by hun 10
persons who, 10y the laws of the United States,
have preference, in consequences oil having paul
moneys as his surelies, which shall be first paid
out of the assets; and any person who shall have
performed any labor "a an operative in the service
Of any bankrupt shall be entitled TO receive the
full amount of The wages due 10 him, not exceed
ing twenty-five dollars: Provided, That such Ia
Dor shall have been performed within six months
next before the bankruptcy of his employer; and
all creditors whose debts nre not due and payable
until n future day, all annnian,s, holders of bot
t0mry and respondentn bonds, holders of policies
Insurnnces, sureties of endorserS, bail, or other
persons, having uncertain or contingent demands
against such bankrupt, shall he permitted 10 come
! in and Prove such debts or claims under this act,
aud shall have right when their debts and cnlnIs
become absolute, 10 have the same allowed them ;
and such annuies and holders of debts payable
in future may have the present value thereof as
certained, under the direction Of such couri,
and allowed them accordingly, as debts in pres
ent; and no creditor or Other person, coming in
and proving his debt or other claim, shall be al
lowed to maintain any suit at law or IN equity
therefor, but shall be deemed thereby to have
waived all right Of action and suit against such
f bankrupt; and all proceedings already commence
ed. and all unsntlsfed Judgments already obtained
thereon, shall he deemed to he surrendered there
by; and in all cases where there are mutual debts
! or mutual credits between the parties, the balance
only shall he deemed the trne debt or claim be =
tween them, and the residue shall he deemed ad-
luscd by the se-off all such proof OF debts shall
: be made before the count decreeing the bank-
/ rupcy, or before some commissioner appointed by
} the court for that purpose; but such court shall
have full power TO set aside and disallow any debt
upon proof that such debt is founded in fraud,
imposition, Illegally or mistake and such corpo-
rations to whom any debrs are due may make
proof thereof by their president, cashier, treasur-
er, or other officer who mnY he especially ap-