North Branch democrat. [volume] (Tunkhannock, Pa.) 1854-1867, 1867-03-27
The Bankrupt Law.


in condensed form. By the law passed,
jurisdiction in Bankruptcy is given to the
several United States District Courts, with
the United States Circuit Courts acting in
a snperyisatory capacity as Courts of Eq.
uitv. and Judges of ths District Court will
be assisted by Registers in Bankruptcy,
whose powers are limited, and provision is
made for reference of disputed questions
to the District Court Judg. S, and for ap-
peaIs from the District Courts to the
Circuit Courts, and from the latter, in Ca
ses where the matter in dispute shall ex-
ceed $4,000, to the United States Supreme
Court.
There are two kinds of bankruptcy, vol
untarv and involuntary. In the former,
any person residing within the United
States Jurisdiction, owing over 5000. and
finding himself nsolveDt, may apply by
petition to the Judges of the District IN
which he has resided for SIX months pre-
ceding the date of the petition, or for the
longes: period during such six months, and
shall there upon be declared bankrupt
The creditors having been properly notl-
fed BY tn" Court may appoint one or
more assignees Of the estate Of the debtor,
the choice to be made by the greater part
in value and in number of the creditors
who have proved their debts, or in case of
failure to agree, then BY the District Judge,
or where there are no opposing creditors,
by the Regicter. The whole affairs OF
the bankrupt pass into the hards OF the
assignees, who have full power granted
them necessary for the collection of all
debts, and the final adjustment and closing
up of the estate; and where delay is likely
to occur from litigation in the final diStrl-
button OF the assets the Court is empower
ed to direct their temporary investment
The bankrupt is liable at all times to be
called up for examination on oath upon
matters relating to the disposal or condi-
ton of his property or business transactions,
aud for good cause his wife NAV, in like
manner, be compelled to attend as wit
ness in the case.--ln the distribution Of the
bankrupt's estate, dividends are to be paid
as agreed upon by m jorIty in value Of
the creditors, from time to time at months
intervals, but the following claims are first
to be paid in full:
First, the fees, cost and expenses of the
acts Second, debts, taxes and assessments
due TO the U. S; Third, State debts, taxes
and assessments Fourth, wages to any
operative, clerk or house servant to all
amount not exceeding $50, for labor per-
formed within six months preceding the
bankruptcy; Fifth, debts due to any per-
sons who are or may be entitled 10 the pre-
ferehce by the laws of the United States.
The voluntary bankrupt is entitled to dis
charge provided no fraud is proved against
HIM, at any time from sixty days to one
year after adjudication of bankruptcy but
the proof on discovery OF any fraud or con-
cealmcut deprlves him of the right TO dis
charge. No person who has once received
his discharge is to be entitled again TO be-
come volunatly bankrupt, unless his es-
tate is sufficient to pay seventy per cent, OF
his debts, or three fourths of his creditors
assent in writing, to his bankruptcy. Pre-
ference and Fraudulent conveyances are de-
cared VOID by the act and suitable pro-
visions are made for the voluntary bank
ruptcy of partnerships and corporations.
The exemptions are as follows; The ne
cessary household aud kitchen furniture
and such other necessaries of such bank.
rupt Ms the assignees shall designate and
set apart, having reference in the amount
to the family, condition and circumstances
of the bankrupt, but altogether not TO ex'
ceed in value, in any Case, til; sum of $500,
and also the wearing apparel of each bank
rupt, and that OF his wife and children, and
tie uniform, arms equipments OF any per
son who is or has been a sol lIer In militia
or In the service of the United States
, and such other property as now is or here
4 after shall be exempted from attachment
or seizure or levy on execution by the law
( of the United States. and such other prop
erty not included in the forgoing exceptions
rs is exempted from levy aud sale upon ex
ecutlOn or other process or order OF court
by the laws OF the State IN which the bank
rupl has his domicle at the time OF thu
! commencements of the proceedings III bank
: ruprcv to an amount not exceeding tina
allowed by such State exemption laws IL
force in the year 1864" Acts of the IN
, voluntary bankruptcy are classified as tol
flows: Departure or ab4ence from the Stat'
where debts are owed, with the intention
to defraud creditors; concealment OF prop
erty to avoid seizure on legal process, as
signments designed to delay, detraud, or
Aluder creditors arrest and detention To-
seven days, under execution for debt ex
: ceedng one hundred dollarss actual i'm
prisonment for seven days in civil actor
/. founded on contract for slO0; assignment
gift, confession of Judgment, or any clhe
act by which preference is given to an.
{ creditor, endorser, or suspend'ng and no
resumug payment for fourteen days The
:, petition for adjudication of bankruptcy ii
such Cases may come from Que or NOR
creditors whose debt reach $3.50, but tn,
, petition must be brought within SIX month
\ after the act of bankruptcy has been com
y mItted. In involuntary bankruptcy th'
nrncppdinus arp mora STRINGENT than II