Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-03-09
THE BANKRUPT ACT.

LIE DAN ARO1A AOAs
We have a synopsis OF the Bankrupt
act, which, we think, on account of its
brevity, will be acceptable to our read
ers. Jurisdiction of cases in bankruptcy
is vested by the law in the District
Courts of the United States, the U. S.
Circuit Courts having supervisory
power as courts Of equity. Registers in
bankruptcy, who must be councillors in
some court of record, will assist the
Judges in the performance of their du
ties. In case of disputed questions, an
appeal from the Registers may be made
to the District Court Judges, and thence
to the Circuit Court, and, in cases involv-
ing two thousand dollars and upward, to
the Supreme Court of the United States.
The act provides for two kinds of
bankruptcy, voluntary and involuntary.
In the former any person indebted more
than three hundred dollars, and being
insovent, may petition the Judge of the
district where he has resided for six
months preceding the date of his petit
ton, or for the longest period during that
six months, and thereupon be declared
bankrupt. The creditors, upon notice,
meet and appoint an assignee or as
signees of the assets Of the debtor the
appointment to be made by the creditors
in proportion to their value and num-
bers Of those who have proved their
Indebtedness. If the creditors cannot
agree, the District Judge appoints, or, if
there is no opposition, the Register. The
entire estate of the bankrupt passes into
the hands Of the assignes, who have full
power of collection and adjustment and
closing up of the estate. All moneys
received are guarded by stringent rules
for deposit and safe-keeping, and, in case
Of delay in settlement, for their safe in
vestment The bankrupt is always liable
to be called up for examination upon
oath upon all matters pertaining to his
property and business transactions, and
for good cause shown, his wife also may
be compelled to appear and testify.
In the distribution of the estate divi-
dends are to be paid as agreed upon by
the creditors, majority in value deter
mining. But the following claims have
precedence, aud must be paid in full
First. Expenses of the Bankrupt Act,
including fees, etc. Second. Debts,
taxes, etc, due the United States Third
State debts and taxes. Fourth. Wages
due operatives, clerks and servants, not
exceeding fifty dollars, for labor per-
formed within six months preceding
bankruptcy, Fifth. All debts due to per-
sons preferred by the laws Of the United
States If no fraud appears the bank
rupt is entitled to his discharge. Fraud
or concealment deprives him Of the right
Of discharge. No person once discharged
can again become voluntary bankrupt,
unless his assets will pay seventy per
cent Of his Indebtedness, or unless three
fourths of his creditors agree to his bank
ruptcy in writing Preferences aud fraud
ulent conveyances are declared void.
Provision is made for the voluntary
bankruptcy of partnerships and opera
tons
The exemptions under the law are
necessaryhousehold and kitchen furni-
ture, such articles as the assigne shall
designate and set apart, but not TO ex
coed in value in any case five hundred
dollars; also the wearing apparel Of the
bankrupt and that Of his wife and
children, and such other property as is
exem opted from seizure under execution
By United States laws, and such other
property as is exempted from levy and
sale by the laws Of the State where the
bankrupt resides at the time Of commend
Jog proceedings IN bankruptcy Involan-
tary baukrupicy is declared liable to en-
cue under The following circumstances; I
First Departure or absence from the
State where debts are due with intent 10 ]