Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-02-09
THE BANKRUPT LAW.
AN ACT to establish Uniform System OF Bank.

AN ACT to establish Uniform System OF Bank
rup,ey throughout tho United States.
Be u enacted By the Senate and House Of Repre-
ssstaiirss Of ths United States Of .fmsriea in Con
grs,s assembled, That thee be, and hereby is, es
tsblished throughout tho United States uniform
system Of bankruptcy, as follows; All persons
Whsisoever, residing in any STATE District or Ter
rtory oil the United States owing debts which shall
not have been created in Consequence Of defaca-
ton public officer, or a, executor, admnistra-
tor. guardian, or trustee, or while acting in any
other hduciary capacity, who shall, by p.tton set
ting forth, TO the best of his knowledge and belief,
list OF his their creditors their respective places
Of residence, and the amount due to cach together
with an accurate inventory Of his their property,
rights, and credits, Of every name. kind, and de-
scnpton, and the location and situation Of each and
every parcel and portion thereof verified by oat.s.,
or, If conscentiousy scrupulous Of taking oath,
10y solemn affirmation Apply to the proper court, as
hereinafter mentioned, Tor the benefit OF this act,
and therein declare themselves To be unable to
their debts ond engagements, shall be deemed bark
rups within the purview Of this act, and may be
declared accordingly by decree OF such court
All persons being merchants, or using the trade OF
merchandise, all retailers of merchandise, and all
bankers, factors, brokers' underw riters or marine
insurers owing debts 10 the amount OF not less than
two thousand dollars, shall be liable to become
bankrupt within the true intent and meaning of this
act, and may, upon the petition Of one or moro oil
their creditors TO whom they owe debts amounting
10 the appropriate court, be declared accordingly
m the following cases, to wit: whenever such per
son, being merchant, or actually using the trade
Of merchandise, or being retailer Of merchandise
or being banker, factor, broker, underwater, OF
marine insurer, shall depart from the State Dislric
or Territory OF which he is inhabitant with iti-
tent 10 deraud his creditors; shall conceal him
SIT 20 avoid being arrested; or shall willing IL
or iraudulently procure himself TO be arrested, or
his goods and chatiels, lands, or tenements, to be
H..
t,n; or shall remove his goods, chattes and effects,
OF concca them to prevent their being levied upon,
taken in execution, or by other process; or make
any fraudulent conveyance, assignment, sale, siff
or other transfer of his lands, tenemen,s goods o.
chattels, credits, or evidences OF debt: Propided
hotcerer That any person so declared bankrupt
al the instance OF creditor, may at his election.
by petition 10 such court within ten DAVIS after its
decree, be entitled to trial by jury before such
court TO ascertain the fact OF such bankruptcy; or
II such person shall reside at great distance from
the place OF holding such court, the said Judge in
his discretion, may direct such trial by jury to be
had in the county OF such PERSONS residence in
such manner and under such directions as the said
court may prescribe and give; and all such DEGREES
passed by such court, and not rec xamined shall
be deemed final and conclusive as to the subject
matter thereof.
Sec. 2. Ind be IL further enacted That ali future
payments, securities, conveyances, or transfers oil
property, or agreemenis made or given by any bank
rupt IN contemplation of bankruptcy, and for the
purpose OF giving any creditor, endorser surety OF
other person any preference or priority over the
general creditors OF such bankrupt; and all o,he,
payments, securities, conveyances, or transfers Of
property, or agreements made or given by such
bankrupt in contemplation Of bankruptcy, TO any
person OF persons whatever, not being bona hde
creditor or purchaser for a valuable consideration,
without notice, shall be deemed utterly void, and A
fraud upon this act, and the assignee under the
bankruptcy shall be entitled to claim, sue for, re-
cover, and receive the same part Of the assets OF
The bankruptcy: and the person making such un-
lawful preferences and payments shall receive no
olschsrGe under the provisions OF this Provided
That all dealings and transactions by and with any
bankrupt, bona fde made and entered into more
than two months before the petition fled agains,
MN, or by him, shall not be invaldaled or affected
by this act Provided That the other party 10 INV
such dealings or transactions had no notice Of prior
act OF bankruptcy, of the intention of the bank
rupt 10 lake the benefit Of this act And in case i,
shall be made TO appear to the court in the course
ofthe proceeding in bankruptcy, that the banktup,
his application being voluntary, has SUBSEQUENT 10
the hrst day OF January last, at any other time
IN contemplation of the passage of BANKRUPT law
oy assignments or otherwise, given or secured any
preference 10 one creditor over another he shall not
receive discharge unless the same be assented TO
oy majority IN interest Of those of his creditors
VINO nave not been so preferred: find provided also
mat nothing IN this ect contained shall be constru
co 10 annuI, destroy, or impair any lawful rights
VI married women or minors, or any liens, mort.
or oner securities on property real perso.
nal, which may be valid by the laws of the States
respectively, and which are not with the
provisions OF the second and fifth sections of This
act
Sec. 3. find be it further enacted, That all the
property and rights of property, of every name and
nature and whether real personal or mixed of every
bankrupt, except as is hereinafter provided. who
ehali oy decree OF the proper he declared to
DC bankrupt within this oct, SHALL by mere opera.
iion OF law, ipso acio from the time OF such decree
be deemed TO be divested out of such BANKRUPT
Mi'hout any DINER act, assignment, or other convey
ahce whatsoever; and the same shall be vested. bv
oTee Of tie same decree, in such assignee as from
ine 10 time shall be appointed by the proper court
Tor ihis purpose; which power of appointment and
removal such court may exercise at its discretion.
totes quotes; and the assignee SO appointed sbnlI
be vested with all the rights, titles nowers al
authorities 10 sell, manage, and dispose of the sam,
and 10 use for and defend the same subject 10 he
orderstand directions Of such court; ns fully 10 nil
iniens and purposes, as If the same were vested in
or might oc exercised by, such bankrupt before or
oil the time OF his bankruptcy declared as aforesaid
ende suits IN law or in equity, then pending in which
Iuch bankrupt IS party, may be prosecuted and
aeiended by such assignee TO their final conclusion
III the same way, and with the same effect, as thew
might have been by such bankrupt; and no sui,
commenced by or against any assignee shall he
sbnted by his death or removal from Office but tho
same may be prosecuted or defended by his success
sor IN the same Office: Provided, hoperer. Tbn,
ihere shall be excepted from the operation OF tho
provisions OF this section the necessary household
and Kitchen furniture, and such other articles and
necessaries of such bankrupt as the said assignee
snail designate and set apart, having reference in he
amountto the family, condition, and crcumsta noes
OF the bankrupt, but altogether not to exceed in
value IN any case, the sum of three hundred dollars.
hnd, also, the wearing apparel Of such bankrupt
and that of his wife and children; and the deteroi
nation OF the assignee in the matter shall on excen
Ton taken, be subject TO the final decision of said
court.
Sec fad be IL further enacted. That evs,v b,,L-
rupt who shall bona fde surrender all his pTonertv
and rights Of property, with the exception beloys
mentioned, for the benefit OF his creditors md shall
fully comply with and obey all the orders and dirsr
tons which may from time 10 time be passed by m,
proper court, and shall Otherwise conform 10 oil the
other acquisitions Of this act shall (unless nnor,v
IN nunLer and value OF his creditors who have proved
thoir debts shall file their written dissent e
entitled 10 full discharge from all his debts to be
decreed and allowed by the court which has declar.
ed him bankrupt, and q certificate thereof granted
70 him by such court accordingly, upon his petition
filed for such purpose; such discharge and certificate
not, however, 10 be granted until after ninety
days from tho decree Of bankruptcy nor until aCter
seventy days notice in some public newsp1-
paper, designated by such court to ell Creditors who
have proved their debts and other persons in inter
est, 10 appear Of particular time and Mace 10 show
cause why such discharge and certificate shall not
he grantedi at which time and place any such credi
Tors, or other persons IN interest, may appear and
contest the right OF the bankrupt thoreto Pyopidsd
Tint IN all cases where the residence ofthe credor
Is known, service on him personally, or bv leiter
addressed 10 him al his known usual place of resi-
dence, shall be prescribed by the court as in their
discretion shall seem proper, having regard To Tho
distance at which the creditor resides from such