Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1866-06-05
The Bankrupt Bill.

The following is a summary of the Bankrupt
law as it passed on the 22nd:
The first section constitutes the District
Courts OF the United States Courts of Bank
ruptcy.
The second section gives the United States
Circuit Courts general superintendent and jul
risdlclon OF all cases and questions arising I'M
der the act.
Section 3 to inclusive relate to the admin
istration of the law in course of bankruptcy
Sections 8, 9 and 10, refer to appeals and
practice
The eleventh section provides that, if any
person residing within the jurisdiction of the
United States owing debts over three hundred
dollars shall apply, by petition. to the, judge Of
the judicial district, setting out his inability to
pay his debts in full and his willingness to sur
render his estate forth benefit Of his creditors,
the fling fsuch petition shall be an act of bank
ruptcy, and such petitioner shall be adjudgen a
bankrupt. A warrant shall then be issued by
the Judge, directing the Marshall of the Dis
trict 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 as
signees.
Sections - to Is, inclusive, define, in great
detail, the dutses Of assignees.
The sections | 9 to24, inclusive, relate to debts
and the proof of claims.
Section 25 provides for the sale of perishable
property.
Section 26 provides for the examination of
bankrupts before the Court, and exempts
them from liability to arrest during the pend
ency of the proceedings in bankruptcy in civil
actions.
Section q relates to the distribution of the
l. /, A
are duly proved and allowed are to be entitled
to share in the bankrupt property. pro rata,
without any priority or preference whatever,
except that wages due from him to any opera
tive, clerk or house servant, to any amount not
exceeding fifty dollars for labor performed wilh-
in six months next proceeding the adjudication
of bankruptcy, shall be entitled to priority, and
shall first be 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 following order: First fees, costs and
expenses of suits, and for the custody of prop
erty I'd. All debts due to the United States,
and all taxes and assessments under the law
thereof 3D. All debts due to the State in which
the proceedings in bankruptcy are pending, and
all taxes and assessments made under the laws
Of such State.
Fourth Wages due to any operative, clerk
fifty dollars, for labor performed, within SIX
months next preceding the first publication of
the notice of proceedings in bankruptcy.
Fifth. All debts due to any persons who by
the laws of the United States are, or may be,
entitled to priority or preference in like man
ner, as is this act had not been passed: always
provided that nothing contained In the act shall
interfere with the assessment and collection of
trxes by the United States or any State.
Section 20 and the five following sections re-
late to the bankruptcy discharge and it's effects.
IF it shall appear to the Court that the bank
rupt has in all things conformed to his duty I'M
der this act and that he is entitled under the
provisions thereof to receive discharge the
Court shall grant him a discharge from all his
debts except as thereafter provided, and shall
give him certificate thereof, under the seal of
the Court.
Section IS declares preferences and fraudulent
conveyances void.
Sections SO, 81 and SO relate to bankruptcy
of partnerships and corporations, and to dates
and depositions
Sections 80 and AZ inclusive, provide for the
case of involuntary bankruptcy, departure
from the State, avoiding the service of legal
process, removal or cOncealment of property,
fraudulent assignment of property, arrest and
detention for debt for a period of seven days,
confession OF Judgement or suspension of pay
| ment of commercial paper for fourteen days,
shall be deemed an act of bankruptcy
Section 43 provides for the superseding of the
bankrupt proceedings by arrangement
Section A provides penalties against bank
| rupts for concealment of property, classifying
books Or papers, fraudulent assignment or CON
veyance of property, spending in gaming, per-
hitting a fictitious debt to be proved against
him. obtaining goods on credit fraudulently
within three months of the commencement of
the proceedings in bankruptcy these are to be
deemed misdemeanors and punished by impris-
onment, with or without hard labor, for term
not exceeding three years.
Section 45 and 46 provide penalties against
officers in administering the law
Section Al regulates fees and COSTS
Section 4S regulates stamp duties on petitions,
warrants, etc.
Sections 40 and so define the meaning of
terms and the computation of time.
Section 81 and last enacts that this act shall
commence and take effect as to the appoint
ment Of the officers created hereby and the pro-
mitigation of rules and general orders from and
after the date of It's approval: provided that no
petition or other proceeding under this act shall
be filed, received or commenced before the first
day Of November, 1866.