Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1841-11-27
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GENERAL BANKRUPT LAW.

has been carefully prepared, from the orr
glnal' fer publication in this paper. All
parties concerned in its provisions will find
it convenient document for reference
Sentinel Of Freedom
Abstract Of the General Bankrupt Luv,
passed august, ls4l.
l. Who may be Banhrupts7 By sec. LIST,
the law establishes two kinds of bankrupt
cy--the one voluntary, the debtor himself
demanding it, the other compulsory, the
creditor asking the court to declare the
debtor bankrupt. We shall digest the act
as regards both in order.
First, then, Who may be Voluntary
Bankrupt The act, sec. /, says, all persons
residing within the United States unable to
meet their debts and engagements except
those whose debts have arisen
/, From defalcation as public officer
2, From defalcation as an executor or
administrator.
3, From defalcaton as guardian or
trustee, or
a, From defalcation while acting in any
other fiduciary capacity.
Secondly, Who mag be compelled 10 be q
rupn The act, sec. l. provides that any
merchant, retailer banker, factor, broker,
underwater, or marine insurer owing
$4,000 and upwards. may on the petition
Of creditor or creditors 10 the amour, of
$500 be declared a bankrupt, if he has
committed any of the following acts of
bankruptcy, viz:
1, IF he has departed from the state, dis
trct, or territory in which he resides.
! with intent to dcfraud his creditors.
2, If he shall conceal himself TO avoid
being arrested.
g. If he shall willingly or frsudulenty
procure himself to be arrested, or his prop
erty to be legally seized for his debts.
4, IF he Shall remove or conceal his
goods to get them out of danger of pro-
cess.
S, If he shall fraudulenty convey or
transfer his lands, goods, credits, or evil
dences of debt.
i Recurring now to voluntary bankruptcy,
we will inquire hoD n person must proceed
cho cishes to be declared bankrupt? Sec.
|, provides that he must present petition
to the proper court, verified under oath or
affirmation, setting forth a list of all his
creditors, their respective places of resi-
dence and the amounts due to each of
them, together with an inventory of all
l their property, rights and credits whatever,
and the location and situation of each part
thereof; in which petition they must further
declare themselves unable to meet their
debts and engagements.
= Next let us see hour should creditors pro-
coed uho wish that any debtor should be de-
clared bankrupt? They also should pre-
sent petition to the same court, stating
5 that he owes them to the amount of $500;
that he is such person as the act, as be-
fore stated, makes liable TO be declared
bankrupt; that he owes at least $4,000; and
that he has committed one of the above
specified acts of bankruptcy.
On the reception of every such petition,
notice shall be published in one or more of
the papers of the district, at least 90 days
before the hearing, at the time and place
of which all persons interested may appear
and show cause against the decree of
bankruptcy--the evidence at the hearing
to be under oath or affirmation, oral or by
deposition, before the court, it. commits
sioner, or a disnterested Judge Of the
state where taken.
After the hearing of such petitions pre-
sented either by the debtor or his creditors,
the court by decree will declare the person
petitioning, or petitioned against bank
, rupt.
But any person 50 declared bankrupt,
, at the instance of creditor, may have
trial by jury to ascertain the fact Of such
bankruptcy, if he petitions the court for
that purpose within ten days after its de-
cree--if he does not, the decree is final.
1.-THE Decree of Bankruptcy and its
Effects
: Bv Sec. 8. II is provided that all the
property and rights of property whatsoever
, of persons who shall be declared bankrupt
shall. ipSo tacto, from the date of the de-
cree, be .divested out Of the bankrupt and
vested in an assignee, TO be appointed by
the court, who shall thereupon be clothed
with the same rights as to his property
which, till that time, the bankrupt had; to
act, however, under the direction of the
court: excepting the necessary household
and kitchen furniture, and such other arti-
: cles and necessaries of the bankrupt as the
= assignee shall designate and set apart, (alto-
gether not to exceed $500 worth in any
case, to be selected according to the fam
: lily, condition and circumstances of The
bankruptcy and also the wearing apparel
! Of the bankrupt aud his family shall be
: excepted and retained by the bankrupt.
u BY Sec. ,, 1t is provided that all future
:. payments or arrangements made by bank
It rupt in contemplation of bankruptcy, and
for the purpose of giving any Of his Credl