The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1841-09-14
ABSTRACT OF THE BANKRUPT BILL Al
1T PASSED

1T PASSED
The first section establishes a uniform system
of Bankruptcy throughout the Uuited States, and
provides that all persons owing debts, who shall,
by petitions, setting forth list Of their creditors
the amount due each with an inventory Of their
property of any kind verified by oath, apply to the
proper court shall be deemed Bankrupt-All per-
sons being m erchants retailers, all bankers, fac
tors, brokers, underwriters, or marine insurers,
owing not less than $4,000 shall DO liable to be-
come bankrupts, and may on petition of one or
more oftheir creditors to whom they owe not less
than $500, be declared in the following cases,
to wit: in cases of department from the State, with
intent to deraud; OF having procured himself to be
arrested, or having removed goods for concealment
or having fraudulen,Iy assigned. ANY such person
however may have trial by jury to ascertain the
| facts.
The second section declares all further payments
made in contemplation Of bankruptcy, or to prefer
| any creditor, fraudulent and void, and the person
making them shall receive no discharge So in
cases Of voluntary baDkrupt--if he secure any
preference to one creditor over another, in con-
temptation ofthe passage of this law, he shall no,
receive discharge less majority Of the cred.
itors assent 10 1t.
BY sec lion ihird, all property ofevery descrp-
ton, of every person declared bankrupt, except
is hereinafter provided sha be psc iacto dives
ted out of the bankrupt, and the shall be
ted in such assignee as shall be appointed by the
court-suIs pending by the bankrupt hall be coD>
tinued by the assignee, and suit by against an
| assignee shall ahate by death OF such assignee x.
cept such household and kitchen furniture of the
bankrupt, as the assignee shall designate having re-
ference to the amount of the family and condition
OF the bankrupt, but in to exceed in value
$500, and also the necessary wearing apparel On
exception being taken to the de determination of the
assignee, the matter to BIO decided by the court.
The fourth section provides that every bank
rupt who faithfully complies with the prov isions of
the act shall be entitled full discharge from a
his debts, and a certificate to the effect granted
him; not however, within 80 days of the decree
being granted, nor till 70 days notice shall have
been given TO all the creditors to appear and show
cause why the certificate should not be granted.--
Such bankrupt shall at II times be subject to ex-
animation orally, or upon WI itten interogaores,
before such court. oath, in all matters relating to
such bankruptcy, which necessary for the pur
poses of justice. IF in any case of bankruptcy, a
majority in number and value of the creditors who
shall prove9 their deb Is shall at the time of hear
ing of the petition for discharge file their WRIT en-
dissent to tho allowance ofa discharge and certii-
cate, to such bankrupt, or if upon such herring a
discharge shall not be decreed to him he may de-
mand trial BY jury, upon proper issue 10 be
directed by the court or he may appeal from that
decision to the Circuit Court. And if upon full
hearing, it shall be found by the court or the jury
that the bankrupt has, IN all things, complied with
,herequisticns Of this act, the court shall decree
his discharge
Section fifth provides that creditors coming in
and proving their claims shall be paid pro rata and
no preference shall be given except for debts due
the United States;and aborers in the service of the
bankrupt, when those OF the latter shall not exceed
$o5 Debts not due till future day shall have
their value ascertaned and allowed.
The sixth section gives the District Court juris
diction in all matters arising under this act. The
Court to regulate tho forms of proceedings and the
facts.
The seventh section provides that all proceedings
shall take place in the district where the bankrupt
resides. t,
BY section eighth the Circuit Court has concur
rent jurisdiction with the District Court Of suits
.tE .tss IT 81 I.a I.'la . r..... llr .4a.,. 4