The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1866-01-12
The New Bankrupt ELL.
From The Cincinnati Enq,Hra.1

From the Cincinnati E1qtf'rr.l
The proposed National Bankrupt Act, which he,
been read twice in tho House OF Representatives,
and referred to committee, is a long document,
which wonld fill lime Of these columns in small
stypc. The bill, as it now stands, gives the pre-
sent United States court jurisdiction in Ill cases
arising under tbs act and regulates tho appoint.
eai cspac sr Tas on' Of tns ass
courts and subject to their order, the practice in
all proceedings in bankruptcy, and somo other
matters OF merely professional interest. The bill
then provides for volunslryabankruptc on the
motion OF the bankrupt himself; and Involuntary
bankruptcy, on tho motion Of tho creditors of the
bankrupt. The provisions arc district as to each
In involuntary bankruptcy it is provided that
any person residing within the jurisdiction of the
United States, owing debts provabe under the
act exceeding sou i'll amount, can apply, by peti-
tion to the Judge of the judicial district in which
he resides, setting forth his inability to pay his
debts, and anncxing sworn schedule of his debts,
their amount and nature, with tho names and resi-
dences of his creditors, annexing, also an inven-
tory of all property of every kind in his possession
or in which he has any interest; and the filing of
such petition is to be an act Of bankruptcy and
the petitioner shall be adjudged bankrupt The
Judge is then to issuo warrant directing tho.
Marshal to take possession of all the debtors pro-
perty of every kind, and keep the same until tho.
appointment Of all assignee, and directing him to
notify creditors to prove their debts. AssigneeA
are to be.chosen by tho greater part in value ofI
creditors, and such assgnees, when approved by
the Judge, take possession OF the debtors proper
ty and ali books and papers relating thereto, with
certain slight exceptions.
All debts and liabilities existing, though not ma
tured or asccrtained in amount at the timo of
the adjudication Of bankruptcy, may be proved
against the bankrupts estate. And all claims
provable under the act can be prosecuted in no
other manner than under the act, except for the
mere purpose of deciding their amount. All
claims are to be presented on oath and arc to be
investigated judicially in case either their amount
or validity is disputed Tho assignces have power
also under the supervision Of the courts to sell or
redeem property and to take various prescribed
measures for the advantage of the estate, and to
bring and defend suits on behalf of the estate.
Wages due any operative, clerk or house servant,
to all amount not exceeding fifty dollars. aro to
have priority all claims of individuals, and to
be first paid in full. at the final dividend claims
are to be paid in full in the following order: First,
fees and costs OF tho proceedings. Second, all
dues to the United States. Third all dues to the
State in which the proceedings arc pending.
Fourth. wages OF operatives, etc, which have ac-
crucd during the six months preceding the first
notice of the proceedings as above mentioned.
Ffth all dues to persons entitled to priority aside
frcm the provisions of the act under the laws of
the United States.
On due notice, and at the timo and under The
conditions provided by the act, the final discharge
to be given to the bankrupt from all claims prora
bic under tho act such discharge to be withheld,
or to he invalid if granted in case of any fraud OF
violation on tho part of the petitioner of tho pro-
vision of the act in that behalf
No second discharge is to he granted to any
bankrupt whose estate is insufficient to pay
seventy per cent. of tho claims against him without
the consent Of thrcc-fourhs. in value. of his
creditors. Andno third discharge can be granted
in any case But bankrupt who' has paid all
claims existing at Tho time of n previous bank
ruptcy shall bc entitled to discharge as though
there had been no previous application. Creditors
may oppose thodischarGc, and have tho grounds
of thcirhApposition tricl by jury. All debts
created action OF the bankrupt in tiduciary
capac ScMpted from the operation Of the:
Sind DIVISIONS arc made as to bankruptcy
procccda3S on the part OF partnerships and cor
porations.
Tho proceedings in involuntary bankruptcy, on
the motion of the creditors, differ from those in
voluntary bankruptcy simply in their commence
ment. Whenever debtor avoids legal process in
al action for the recovery of O debt or demand,
proyable under the act or isposcs of his property
in fraud of his creditors; or whenever u banker,
merchant or trader fraudently suspends, and docs
not rrsunic the payment of his commercial paper
within fourteen days, and in n large class of emu
mcratcd cases, the debtor on petition of his cred
itors TO the amount of over two hundred and fifty
dollars, shall be adjudgcd n bankrupt.
After the adjudication of bankruptcy, three
fOlrths III value Of the creditors can, undor tho
direction and approval of the Court, wind up and
settle the bankrupts estate i'll such manner as
cd III trustees, tho rights and duties Of the trus
tees being similar to those Of the assgnccs under
the ordinary method of procedure and the dis
charge is to be in the same form and of the same
effect as though the usual proceedings in bank
ruptcy were had-NcW YOrL: World