Daily Mississippi clarion and standard. [volume] (Jackson, Miss.) 1866-1866, 1866-06-07
The Bankrupt Bill.

The law on this subject which re-
Gently passed the House of Represen-
tatives establishes uniform proceed
ings for bankruptcy in all the States
and constitutes the District Courts of
the United States, Courts of Bank
ruptcy. 1t provides for voluntary and
involuntary bankruptcy.
Any person within the jurisdiction
Of the United States, owing debts
over three hundred dollars, shall APP
ply, by petition, to the judge of his
judicial district, setting out his inabil-
ity to pay his debts in full, and his
willingness to surrender his estate for
the benefit of his creditors, The filing
of such petition shall be an act of
bankruptcy, and such petitioner shall
be adjudged bankrupt A warrant
shall then be issued by the Judge, di
recting the Marshal of the District to
take possession of the estate, and keep
the same until the appointment of an
assignee. Notice is then to be given
to the creditors to hold meeting and
choose one or more assignees.
An creditors whose debts are duly
proved and allowed, are to be entitled
to share in the bankrupt property, pro
rata, without any priority or prefer
ence whatever, except that wages due
from him to any operative, clerk or
ceeding fifty dollars, for labor perform
ed within six months next preceding
the adjudication of bankruptcy, shall
be entitled to priority, and shall be
first paid in full. In the order for a
dividend the following claims are to
be entitled to priority of preference,
and to be first paid in full in the fol
lowing order: First, fees, costs and
expenses Of suit and for the custody
of property ID. All debts due to the
United States. and all taxes and assess
ments under the laws thereof Sd
, All debts due to the State in which the
proceedings in bankruptcy are pend
ing, and all taxes and assessment.
made under the laws of such State.
Cases of involuntary bankruptcy ar,
provided for in the following cases:
A departure from the State, avoid
e ing the service of 1egal process, re
: mOval or concealment of property
arrest and detention for debt for
period of seven days, confession o
judgment, or suspension of paymen
> of commercial paper for fourteen days
e shall be deemed an act of bankruptcy
Penalties are provided against bank
ruQts for concealment of property
d classifying books or papers, fraudulen
W assignment or conveyance of property
=, spending in gaming, permitting ticti
tiOus debt to be proved against hin
, obtaining goods on credit fraudulent
is within three months of the commence
d ment Of proceedings in bankruptcy
" These are to be deemed misdemeanor
and punished by Imprisonment, wit
or without hard labor, for a term nc
% exceeding three years.
8 We think such law demanded q
d much for the interest of creditors 9
/ debtors. There are thousands ofhone>
men who, if they were relieved by
judicious bankrupt law, would, by the
IL energy, accumulate property and ever
. tually pay their debts. We are not AZ
" vised as to what the fate of the hi
D. will be in the Senate, but think it vel
. probable that in some shape or Othe
it will become a law In the meal
ar time, rapaciOus creditors, who a
Y. struggling for judgments with vie
of coercing principal, accumulated i
r. terest and costs from those who a
es so unfortunate as to be in debt, W
n consult their interest by endeavoril
zee to compromise with all except tho
re who are undoubtedly solvent. In e
he deavoring to collect the whole of the
,e- debts, they may be able to realize on
at a very small part.
m The dividends obtained in bankru
ne cases, will be small, while the COZ
lis, gives the debtor discharge that W
lad be conclusive on all creditors.