Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1867-03-15
THE BANKRUPT LAW.
The Act to Establish an Uniform System OF
Bankruptcy throughout the United States

y What the Bill Is-Vhat II PROVIDES.
The substance of this most important
bill, passed by the 39th Congress and ap-
proved by the President, viii be found as
| follows:
Section l establishes the several District
Courts of the United States as courts of
bankruptcy, in addition to the other orlg1-
nal jurisdiction they now have.
Section gives the Circuit Courts equity
power to supervise the proceedings OF the
District Courts in bankruptcy litigation
and affairs, and in addition to this power,
gives them concurrent jurisdiction III the
same matter.
Section provides for the appointment
J in each Congressional District upon the
nomination Of the Chief Justice of the Su-
preme Court, of one ormore registers to be
councillors in the District Courts, whose
duty it shall be to assist the District Judg-
es in the performance of duty III bankrupt
CIV cases. Bonds in 81, 200, no interest in
: any Of the suits, and ability to take the iron
clad OATH are the prerequisites of each re-
cieter.
Section makes it the registers duty to
adludicate upon, receive SurrenderS IN, and
= preside i'll bankruptcy proceedings. He is
. to compute property, dividends, assign pro
TtUO Shares 10 CIGtltOlS, bub bitIo u4ui HULL
committing for contempt OF in acting III
cases that go upon appeal.
Sections 3, I, 5, 8 and 10 provide for the
formula Of legal proceedings in the Court
of Bankruptcy, a recapitulatlon OF the prac-
tice now in vogue in other litigation.
Section II makes $500 the limit of debts
on which to declare voluntary bankruptcy,
requires the bankrupt to be or to become 1t
!; citizen of the United States, fcrbids trans
fer Of property during tendency of pro-
ceedings, and demands full exhibit of debts
!, and assets ON the part of the voluntary
| bankrupt.
Sections II, Is and II provide that the
action insbankruptcy shall go on, should the
bankrupt die, the same as if he were IN cSSe:
that the creditors shall appoint an assignee
or assignees of the debtors estate, subject
to the approval of the District Judge; that
everything be turned over to the assignees,
whether OF substance Or account, for distri-
button except: That there shall be except
ed from the operation Of the provisions of
) this section the necessary household and
kitchen furniture, and such other articles
and necessarieS of such bankrupt as the
said assignee shall designate and set apart,
having reference Ill the amount to the fam
lily, condition and circumstances Of the
bankrupt, but altogether not to exceed III
value, III any case. the sum of 5000: and
also the wearing apparel of such bankrupt
and that Of his wife and children, and the
uniform, arms, and equipments OF any per
son who Is or has been {; soldier IN the MIL
: ltla on Ill the service OF the United States;
and such other property as now is, OF here
after shall be, exempted from attachment
or seizure, OF levy on execution by the laws
of the United States, and such otner prop
; ertY, not included in the foregoing cNcep-
!. tons, rs is exempted from levy and sale
upon execution OF other process or order OF
court, by the laws of the State in which the
bankrupt has his domicile at the time of
the commencement at the proceedings in
bankruptcy to an amount not exceeding
that allowed by such State exemption laws
in force in the year 1864: pgOridcd, That
the foregoing exception shall operate as a
limitation upon the conveyance of the pro-
perty of the bankrupt to his assignees, and
? IN no case shall the property hereby exccp-
ted pass to the assignees, or the title of the
, bankrupt thereto be impaired or affected
by any of the provisions of this act; and
; the determination of the assignee In the
matter shall on exception taken be subject
! to the final decision of the said Court
Sections -, 1G, Il and Is, give the as
, signee full power to recover the property
. Of the debtor, to be distributed by whom
/ sOevcr held require him to classify and
Sei)diatt TIC SDOtlS OF OIilcI tltGctS, CIR
power the assignee to choose arbitrators in
matters Of disputed possession; and provide
for the supervision over and power to re-
, move the assignees by the district Judge for
cause shown.
Sections 10, 20 and 81, ordain that claims
be proved in the same manner as now
against the estate of deceased persons; pro
vide for set-of1S in mutual debts between
debtor and claimants forbids suits against
the bankrupt by those creditors proving
their claims and provide that if any bank
rupt shall, at the time Of adjudication, be
liable upon any bill of exchange, promis-
sory note OF other obligation in respect Of
distinct contracts us 4 member OF two OF
Z more firms carrying on separate and dis
tinct trades, and having distinct estates to
be wound up III bankruptcy, or as q solo
trader and also as member Of Il firm, the
circumstance that such firms are in whole
or i'll part composed of the same individu-
ais, or that the sole contractor is also one
Of the joint contractors, shall not prevent
proof and receipt of dividend in respect
{ of such distinct contracts against the estates
, respectively liable upon such contracts.
: Sections %, % and p require vertical
ton by oath Of Ill claims by creditors, and
: If a corporation, BY the proper officers for
} that purpose, to be filed before the Regis
ter, or it i'll foreign country, before the Con-
sui or other diplomatic officer nearest adj
jacent, and that investigation can be and
must be made by the Judge in case OF all
doubtful claims.
Section % orders the sale and the hold
ing for distribution by the assignee of all
perishable properly, the title to which is
not in dispute.
Section 26 provides for the examination
of the bankrupt by the Court, either at its
own option or at the request of the as
signee, into al circumstances and state
ment of the bankrupt who is punishable
for contempt for non compliance with the
order for examination, and for good cause
shown the wife Of the bankrupt may be
called and similarly examined.
Section q subdivides priority OF claims
as follows Frs. Servants wages under
$50. Second. al creditors pro rata, with
out any preference either from amount OF
date Of claims, except that in cases where
in the bankrupt has become bail, surety, or
guarantor for another, the compliance of
the latter with theconditions mustbe shown
before the claim is allowed.