The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-10-26
WHOLE NO. us
The DISCHARGE.

render all his property and right of property
those excepted as in sec. 81 for the benefit OF
MS creditors, and shall fully comply with this
act and obey all the orders and directions, which
may from time TO time be made by the proper
court, he shall be entitled to decree of full dis
charge from all his debts.
cDut-not, II majority in number and value
Of nus creditors who have proved their debts
shall file their dissent thereto -
Mot-ii he shall be guilty of any fraud or
Wiiui concealment Of his property or rights Of
property. -
Motif he has, in contemplation of bank
ruP'cy' ior me purpose of giving a creditor or
other person preference, or priority arranged
any, OF his debts by payment or otherwise.
Wolff being voluntary bankrupt, he has
SINCE Isl January last or at any other time, n
contemplation OF the passage of bankrupt law
ny assignment or otherwise preferred one cred-
'or over another, unless a majority, in interest
OF ms unPreferred creditors assent (Sec 81
No,-ii ne shall wilfuly omit or refuse to
comply with any order of the Court, or conform
TO any other requisite Of this act.
Motif he shall admit false or fictitious debt
Not-ii baesitlsaefa 49,.
come bankrupt and shall not have feIpf plober
books OF account, after the passing of this act
Not-ll after the passing Of this act, he shall
nave applied trust funds 10 his own use
Not-ii before discharged, unless his estate
produce, after all charges paid, rs per cent, on
the debts allowed. (Sec. 12.)
V.-Dist1ibution of Bankrupts' Effects.
Sec. provides, That the effects Of the Rank.
rupt shall be distributed by paving
l. Debts due by HIM to the United States.
z. Debts due persons who, by the United
states laws have preference in consequence
vi having paid moneys as his sureies
g. Operatives who have been in the service of
the Bankrupt, shall receive their wages in full
to the amount OF S25, provided the services
were performed within six months before the
Bankruptcy, and then
4. All creditors proving bona fde debts shall
share pro rata: ali persons whose demands are
not yet due, or whose demands are uncertain and
contingent, having proved the same shall re-
celve pro rata, when their claims become abso-
ute or II they choose, The value of their claims
may be ascertained under the direction of the
Court, and they may share as creditors in pre-
senfi.
If any creditor shall not prove until after
dividend he shall receive out of the next dvi- |
dend pro rata equal to what Others have re-
ceived.
In unliqLidated accounts the balance shall be |
taken as the true debt
All creditors proving their claims shall there
after be barred from any future suit at law or in
equity for the same, and all proceedings then ex-
listing thereupon shall likewise be annulled
thereby
V.-Proof Of Debt.
Debts shall be proved before the Court, or
Commissioners by it appointed, who shall be
residents In the Bankrupts county. (Sec. 81
Proof shall be made on oath or affirmation,
according 10 the regulations which the Court
may establish; and must be open 10 contest by
jury, at the call of either party. (Sec ~
Corporations shall prove their debts by their
President, Cashier. or other officer for that pur-
pose specially appointed. (Sec. S.
Vl.-1he Assignee
BY Sec. 3, The Assignee, by the decree of
Bankruptcy, becomes from that time entitled 10
all the rights which the Bankrupt had over his
property or credits; he is to prosecute and de-
tend the Bankrupt's suits, and suits by or against
him shall not abate by his death or removal
from office, but 60 on by or against his success
sors. (By Sec. lO,) under the direction of the
Court, he is to administer the assets of the
Bankrupt, to sue for and recover, or otherwise
collect them, and divide them at least once in
six months from the decree OF bankruptcy giving
notice OF the dividend or distribution ten DAYS
previous. he shall have power (Sec. ~ I'M
der the same direction 10 sell and transfer pro-
perry belonging to the Bankrupt, 10 redtem mort.
cages, compound debs,-giving notice Of his
intention 10 apply for such direction ten DAYS at
least before the hearing Within sixty DAYS
after the reception of any moneys from the |
Bankrupts estate, (Sec 81 he is to paw them
into Court, and strictly governing himself by
the orders of the Court, he is TO close the estate
within two years from the decree of bankruptcy.
(Sec. 100 And (by Sec. 81 for the due per
Torrance Of his duties, the Court may require
bond, with two sureties, in such sum as il
may deem proper, in the name Of the United
States, which bond shall be held and sueable
Tor the benefit Of the persons interested
2. How is Mis discharge 10 be obtained?
|. The Bankrupt must file petition for that
purpose.
2. Ninety days from the date Of the decree Of
Bankruptcy must expire, before the Court can
decree discharge.
s. lie must give 20 days notice in a newspa-
per to be designated by the Court, to all credi-
tors proving their debts and other persons inte
rested, to appear at a certain time and place 10
show cause why such discharge and certificate
thereof shall not be granted-and
4. Personal notice or by letter as the Court
shall decree, TO all creditors whose residence is |
known. (Sec. A.
5. On the day notified, the Bankrupt and his
creditors shall have hearing, and the reasons
for and against his discharge shall be canvassed
Then, and at all other times, before the Court or
the Courts Commissioners, the Bankrup, shall
be subject TO examination orally or on written
interrogaories, on oath or affirmation. in all mat
tiers relating TO his Bankruptcy, his acts and do
ings and his property and rights of propertv.
under the supervision of the Court (Sec. d.
3. The rights Of the Bankrupt If at first
prevented from obtaining his discharge.
|. (By Sec. d. If at the hearing. a majority in
number and value of the creditors proving their
debts, file their written dissent to the allowance
Of the discharge and cerifcate-or
2. If the Court under The circumstances shall
refuse discharge, the Bankrupt NAV demand \