The Middlebury people's press. [volume] (Middlebury, Vt.) 1841-1843, 1842-03-08
THE GENERAL BANKRUPT LAW.
BY A MEMBER OF THE BAR.

THE GENERAL BANKRUPT LAW.
BY MEMBER OF THE BAR.
The provisions of this law are two-fold:
]. 1t provides for a voluntary bankruptcy.
2. For an Involuntary bankruptcy.
The one is a remedy for any debtor who
shall be unable to meet his engagements.
The other is a remedy against any debtor
in certain cases. for any creditors,whos claims
are not less than five hundred dollars.
VOLUNTARY BANKRUPTCY.
All persons ,ohateuer, who shall be unable
to meet their engagements, and whose debts
shall not have been created in consequence of
defalcation of public officer, or as executor,
administrator, guardian or trustee; or while
acting in judiciary capacity, may become
voluntary bankrupts.
The debtor must declare, by petition, in the
district where he resides, on oath or affirma-
ton, his inability to meet his engagements
mentioning each creditor, his residence, the
amount due him, together with an accurate in
ventory of his property, of every name. Twen-
ty days notice of this petition must be publish
ed in some newspaper within the District, that
persons interested may appear and show cause,
if they have any, why the decree of bankrupt
CIV should not be granted.
INVOLUNTARY BANKRUPTCY.
The class of persons who may be decreed
involuntary bankrupts, is limited, both as re-
CARDS the nature and character oftheir business,
and the amount of their Indebtedness and the
claim or claims of the creditor or creditors who
petition against them, which must be not less
than five hundred dollars.
The class of debtors against whom such
creditor or creditors may petition, is as follows,
to wit All persons buying and selling arti-
cles of merchandise, all bankers, factors, IN
derwriters or marine insurers, owing not less
than tlro thousand dolldrs!' 20
The following are the cases in which such
persons are liable 10 be made bankrupts
Whenever such debtor shall leave the State,
Territory or district of his residence, with the
intention to defTaud his creditors, or shall will
ingly or fraudulently cause himself TO be ar
rested whenever he shall procure any process
of law to hold his real or personal estate or
convey any personal property TO avoid presses
of law.
CONSEQUENCE OF A DECREE oFBANKRUPTCY.
From the time of the decree, all the proper
ty and rights ofproperty of every kind. become
at once Invested out of the bankrupt and full
and entirely vested in such assignee as the
court may appoint; and the said assignee may
appear in all legal proceedings respecting the
same as the bankrupt could.
PROPERTY EXEMPTED.
The bankrupt may retain the wearing appa-
rel of himself, wife and children, and such ne
cessary articles as the assignee shall designate,
having reference to the family condition, and
circumstances of the bankrupt, but not to ex-
coed the sum of three hundred dollars!
REQUISITE FOR a DISCHARGE.
If any bankrupt, in contemplation of bank.
ruptcy makes any disposition of property, or
agreement in order to give any creditor or
class of creditors preference, or with any per-
son not bona fide creditor or purchaser for
valuable considerations, the same is utterly
void, and fraud upon the act, and incapaci-
tates him from receiving discharge under it.
All bona fide dealings, however, made tsco
months previous to the petition, are not effec-
ted, provided the other party to such dealings
had no notice of prior act of bankruptcy or
of the intention to become bankrupt under
the act.
Neither can a bankrupt receive a discharge.
if he has, subsequently to Jan. 1912, or at any
time in contemplation of the passage of this
law, given or secured by assignment or other
wise, any preference to one creditor over anoth-
er, unless majority in the interest of creditors
not preferred, assent therein.
The bankrupt shall also bona fide surrender
all his property with the exception above men,
toned, for the benefit of his creditors, shall
obey all the orders and directions of the court,
and comply with allthe acquisitions of the act.
6 But ifa majority in number and value of his
creditors who have proved their debts shall
file their written dissent thereto or shall decide
against him, he can not be discharged, unless
it shall appear to the Circuit Court of the Uni
ted States, on appeal, or to jury that the
bankrupt has made full disclosure and sur
render of estate, and in all things conformed
to the directions of this act.
CONSEQUENCE OF A DISCHARGE.
The discharge shall be deemed full and
complete one of all debts, contracts or engage
ments provabe under the act,and may be plea
ded as complete bar to all suits brought there
on in any court whatever.
But if any person once discharged under
this act shall afterwards become bankrupt he
cannot again he entitled to a discharge, unless |
his estate shall produce sufficient TO pay each
creditor seventy-five per cent. on the amount
due.
PROCEEDINGS BY CREDITORS.
The creditors must prove their debts on oath |
or affirmation before the Court.or Commission
ers appointed by the Court, which proof is open
to contestation.
HI creditors are to share pro rata without
any preference. except laborers who for work
done within the proceeding six months, may
be entitled TO wages, not exceeding S25.
ALI Creditors 1uhnSa debts man he dino nf q