Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1841-09-16
HAM. MCKNIGHT, EDITOR.
TuE BANKRUPT LAW.
AN ACT to establish uniform system of Bank
ruptcy throughout the United States.

be, aud hereby is, established throughout
the United States a uniform system o.
bankruptcy, as follows All persons,
whatsoever, residing in any State, Dis
trict, or Territory Of the United States,
owing debts, which shall not have been
created in consequence oil a delalcation as
public officer, or as an executor, admin.
istrator, guardian, or trustee, or while ac-
ting in any other fiduciary capacity, who
shall, by petition, setting forth, to the best
of his knowledge and belief, a list of their
creditors, their respective places Of resi-.
dence, and the amount due to each, to-
Eether with an accurate inventory OF his
or their property, rights and credits of
every name, kind and description, and the
locactlOn and situation oil each and every
parcel and proportion thereof, verified by
oath, or II consclentlously scrupuIous Of
taking an oath, by solemn affirmation,
apply to the proper court as hereinafter
mentioned, for the benefit oil this act, and
therein declares themselves unable to
meet their debts and engagements, shall
be deemed bankrupt within the purview
OF this act, and may be so declared ac-
cordIngIy by decree Of such COURT
All persons, being merchants, or using the
trade merchandise, all retailers of MGR
chandlSe, and all bankers, factors, brok-
ers, Underwriters, or marine insurers,
owing debts to the amount of not less than
two thousand dollars, shall be lab Die to be-
come bankruptS within the true intent and
meaning Of this act, and may upon the
petition oil one or more of their creditors,
to- whom they owe debts amounting in he
whole 10 not less han five hundred dollars. |
TO the appropriate court be so declared &C.
cordly, IN the following cases, 10 wit -
whenever such person, being merchant,
or actually using the trade OF merchaD-
disc, or beng banker, factor, broker,
underwater, or marine insurer, shall de- /
part from the State, District, or Terrific
ry ofwhich he is an iuhabitant, with in d
tent to deiraud his creditors shall con t
ceaI himself 10 avoid being arrested or :
shall willingly or !raudulently procure
himself to be arrested, or his goods and {
ohatlols, lands or tenements, TO be attach |
cd, dsraned, seQuestered, or taken 10 ex.
ecution or shall remove his goods, chat.
tets anJ effects, or conceal them To pre-. q
vent their being levied upon, or taken in '
execution, or by other process or make /
any fraudulent conveyance, assignment, C
sale, gift, or other transfer Of his lands, a
.ienements, goods, or chattels, credits, or a
evidences Of debt: Provided, however, v
that any person SO declared a bankrupt at 81
tho instance of creditor, may at his cleo. c
ilon by petition to such Il court within ten u
days alter lis decree be entitled to a trial e.
by jury before such court, TO ascertain the o
fact Of such bankruptcy or if such per> u
son shall reside at great distance from 81
ihe place OF such court, The said Judge in y
his discretion, may direct such trial by Fl
jury to be had in The county of such a a
PERSONS residence in such manner and n
under such directions as the SAID court d
may prescribe aud give and al such de- a
cress passed by court, and not so re-ex al
Rmlned, shall be deemed final and conclu. C;
sive as 10 The subject matter thereof. 81
N SEC. 2. And be it further enacted, That p
~ future payment, securities, conveyan- 5,
ees, or transfers of property, or agree !!
mcnls made or given by any bankrupt in VI
contemplation Of bankruptcy, and for Ut
Che purpose OF giving any creditor, en- OF
uorser, surety, or other person any pre- 10
ierence or priority over the general cred Id
itors o such bankrupt ; and all other pay a
mentS suretIes, conVeyances. or trans ers III
OF property, or agreements made or given CT
Dy such bankruptcy, 10 any person or per al
son or persons whatever, not being bo II
no tlde creditor or purchaser for valua- pt
bic consideration, Without notice, shall be pr
deemed utterly void, and q fraud upon to
this act and the assignee under the bank. iu
ruptcy shall be entitled to claim, sue, for or
recover, and receive the same as part of co
lhe assets of the bankruptcy and the &C
person making such unlawful preierren. tn
ces and payments shall receive no dis. ga
charge under the provisions of this act. to
Provided, That all dealings and transac- sh
'lons by and with any bankrupt, bona fide Ike
nade and entered into more than two rr
months before the petition filed against CHI
nm, or by him, shall not be invalid or az ba
iected by this act: Provided, That the pre-
other party to such dealings or other ING
transactions had no notice OF prior act ter
D bankruptcy, or the intention Of the Iru
bankrupt to take the benefit OF this acl Tn
and in case it shall be made to appear thl
0 the court, in the course OF the proceed pei
ngs in bankruptcy, that the bankrupt, his del
ppllcaton being voluntary, has, subject. or
d to the first day oil January last, or al bal
ny other time, in consequence Of the
'uSsage ola bankrupt law, by assignments sui
\ otherwise, given or secured any pre- VIZ
etence to one creditor over another, he sue
pail not receive discharge unless the by
me be assented to by majority in in sci
rest oil those o! his creditors who have up,
eG been so preferred And prnulded ,nr