Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-08-24
by UTH RITY.
LAWS OF THE UNITED STATES,
PASSED At ruE FIRST SESSION OF TwEsrr.sEvtsrH
CONGRESS-.
TPUBLIo.--No. 6.

CONGRESS.
TpUBLtc.--No. 61
AN ACT TO establish uniform system of bank
ruPtcy throughout the United States.
BS Il enacted by TIE Senate and House Of Rspre
ssHiaiiUss Of the Uated States Of .imerieI in Cen
grcsS assembled, That there I've, and hereby is. es
tabIshed throughout the United States uniform
system Of bankruptcy, rs follows: All persoa,
whatsoever, residing in any State District, or Ter
r,tory H' the United States owing debts, which shat
have ossn created IN conseque~~ OF a def,lca
ZION public Off sr, executor, admlnis,ra.
tor Guardian or trustee, while acting any other
fiJc 1-v capacity, VINO shall, Ly petition, Setti Q
forth to thu best OF his knowledge rnd belief a list
OF his their creditors, their respective PAGES OF
residence, and the amount due 70 each together III
accurate inventory o his heir property rights
md credits OF every name, kind and description,
and the location and situation OF each and every
parcel and portion thereof, verified by oath, II
conscientous'y scrupulous Of taking oath, by
solemn affirmation, apply 10 the proper court, as
hereinafter men Toned, for the benefit Of this act
and therein declare Intensely to be unable meet
their debts and Gcmenis, shall be deemed bank
rupts within the purvlew al this act and may be so
declared accordingly by decree Of such court. All
persons, being merchants or using the trade OF mer
chandze, all retailers OF merchandise, and all bank
ers, factors brokers, underwriters, marine
ers owing debts to the amount OF not less than two
thousand dollars, shall be liable to become bank
rupIs within the true intent and meaning of this
net, and may, upon the petition OF one Of
thor creditors to whom they owe debts amounting
the whole less than 1--WE hundred do lars, to
the appropriate court, be 50 declared accordingly
IN the following cases, TO Wit: whenever such per
son, being merchln actually using the trade
of merchandise or being retailer Of merchandise,
or being banker, factor, bloker, underwater,
marine insurer shall dc part from the State, District
or Territory Of which he is Inha biant, with IN
tent dcfraud his creditors shall conceal him
self TO avoid being arrested; shall willingly or
fraudulcntly procure himself TO be arrested, or his
goods and chatcls, ands or tenements, 20 be at
taehed dlsrancd, scquesered o. taken m execution;
or shall remove his goods, chaltes and effects, or
conceal them to prevent their being levied upon or
taken in execution, or by other process; make
any fraudulent conveyance, assignment, sale, gift.
or other transfer OF his lands, Icnements, goods or
chattels, credits evidences OF debt: Proudsd, |
hotveUer, That any person so declared bankrupt |
Mt the instance Ola creditor, may, his election, |
by petition to such within days after its |
decree, be entitled TO trial by Jury before such
court, ascertain the fact OF sGoh bankruptcy; or
IL such person shall reside al great distance from
the place OF holding such court, the said Judge in
his discretion may direct such trial by Jury 10 he
had IN the county of such PERSONS residence in such
manner and under such directions as the sad court
may prescribe and give, and all such DEGREES passed
by such court, and not so re-eNamned, shall be
deemed final and conclusive as to the subject matter
tlereof
Sec. >. .l1d belt further enacted That all future
payments, securities, conveyances, transfers OF
property, or agreement made or given by any bink
rupt in contemp. alton Of bankruptcy, and for the
purpose Of giving any creditor, endorSer surety, or
other person any preference priority over the GEN
eral creditors Of such bankrupt; and all other pay
ments, securities ConveylnceS or transfers Of prop
erty, or agreements made or given by such bank !
rupt in contemplation of bankruptcy, TO any per-
persons whatever, not being bona ide cred !
itor purchaser for a valuable consideration with
out notice, shall be deemed utterly void and . fraud
upon this ac: and the assignee under the bankrupt
cy shall Ge entitled to clam, for, recover, and |
receive the part of the assets of the bank
ruptcy; and the person making such unlawful pref !
ere1c-s and payments shall receive no discharge I'M
der the provisions of this act: PTorasd, That all |
dealings and transactions by and with any bankrupt |
bona hde made AID entered into more than two |
months before the petition filed against him. or by |
him, shall be InvaLatet affected Oy this &C.
Prsuidea That the other party TO any such deal |
ings or transactions had notice Of PRIOR act OF
bankruptcy, of the intention Of the bankrupt to
take the benefit OF this act. And IN II shall he
made appear TO the court, IN the Of the pro-
ceedngs inOenkruptcy that the bankrupt ms appli-
cation being voluntary, has subseq the st day
OF January last, any other lime, IN contemplation
Of tho passage ola 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 assent-i TO by majority IN in
terest of those OF his creditors who have not been So
preferred: find provided also, That nothing IN this
act contained shall be construed 10 annu, destroy
impair any lawful rights OF married women or
minors, any liens, mortgages, other securities
property, real personal, which may be valid
by the laws Of the States respectively, and which
not inconsistent with the provisions Of the second
and NTH sections OF this act
Sec. Ind b. IL Jt4rthsr enacted, That al the pro.
pery and rights OF property, OF every name and IA
ture and whether rca,, personal or mixed, Of every
bankrupt, except is hereinafter provided who
shall 10y decree OF the proper court be declared 10
he bankrup, within this act, shall, by mere opera
ton Of law, pso facio from the time OF such Decree
he deemed 10 be tves,ed out Of such bankrupt with
cat any oher oct, ass gnment, or other conveyance
whatsoever; and the same shall 0- vested, by force
NJ the decree, 90 such assignee trom time TO
time aha. be appointed ~ the proper court for this
purpose; wien power a NppOIniaI-1i and rem va
such y x.gc..s ~ Us discretion, totes quo
tIr- and The assignee 50 appointed s--. vest
with 49,. .nC ~ Is, .'.es, Pos -5, z-- s-.--:ss o.
eel, mana a, za- dispose g. .-- g. SO
aud defend The s--f- E- -. - .ia .--.- I-- ---
tIOls o! ID com o. g. D.. .l...- l..- ---
poses, as n 80 s.-E a=-l -l-G. mig.
esercIssc o.. So -i-s---- -'s,.rt o. ne
lis bankruptcy -s-.z-s- t'--tsr. ru. O. l...
81 llw IN tg-lty. .-=- -z---E .rr 90
bankrupt is parry, NY .s .--.-.--a- s.s.- .
ed by such sgn@e 20 trs' llz -1-. e. % .-.
same way, aud with the same tts-', Is ;-sy r- a.,
have been by such bankrupt. aad no suit COM
mcnced by against any assignee sha.. be aDlicd
by his death or removal iIom Office, bJ. the same
may be prosecuted or defended ny his successor in
the Office; PrJuici. h0trFrr, That there sha.
be excepted from the operation Of the provisions Of
this section the Necessary household and kitchen
furniture, aud such other articles and nCcessarss Of
such bankrupt the said assignee shall designate
and set apart having reference IN the amount 70 the
family, condition, aud circumstances Of the bank
Tup, but altogether not to exceed in value, IN any
case, the snm Of three hundred dollars and 20,
his wife and children and the determination Of thc
assignee IN the matter shall on exception taken, be
.bjtct 10 a final decision Of sl.d court.
Sec. 4. ind be Il further ENACTED, That every
bankrupt who shall bona hde surrender oil his pro.
perry and rights Of properly, with the sxscp .on
before mentioned for the Jerlht Of his creditors,
md lI1II fully comply with and obey rl. the orders
and directions which muy from time TO time bg pas.
ei by the proper court, and shall. otherwise con.
form 70 all the other rsqu tons Of this act, shall
(uniess a majority number lEd value Of hrs Gre
dilors, who have proved their debts slll. their
written dissent tGeretu) us entitled 70 q foil dis.
charge from all his debts 90 ba IccrCed and allowed
by the court which has declared him bankrupt.
and certificate thereof granted TO him by such
court accordingly, upon his petition filed for
such purpose such discharge aod certificate not.
however, 70 be granted until after ninety days ON
the decree Of bankruptcy, nor unit. offer seventy
days notice In some public newspaper, Designated
by such court, 10 all creditors who have proved
their debts and other persons in interest % appear
ut particular time and place, 90 show cause Why
such discharge md certificate shall not br granted.
ut which time end place any such creditors or other
persons 10 interest, may appear and contest the
right Of the bankrupt thereto. PrOpiisd, That n all
cases where the residence Of the creditor rs known
service on him personally, or by letter addressed
70 him az hs known usual place Of residence, shl.
be prescribed by the court, as IN their discretion
shall seem proper, having regard 10 the distance a
which the creditor resides from such court. And
u any such bankrupt shall he guilty Of any