Bellows Falls times. [volume] (Bellows Falls, Vt.) 1856-1965, 1867-03-29
The General Bankrupt Law.


The President has signed the act passed during
the closing hours of the thirty-ninth Congress to
establish uniform system of bankruptcy through
out the United States. As the entire business
community is interested in the new law, we give
below comprehensive synopsis of its leading
features
The jurisdiction in bankruptcy cases is given
by the act to the several District Courts of the
United States, with the United States Circuit
Courts acting in supervisory capacity as Courts
of Egnity. The Judges of the District Courts
will be assisted in the performance of the duties
| imposed upon them by Registers in bankruptcy,
who are required to be the counsellors of those
courts, or of some of the Courts of Record of
their several States. The power of the Registers
is limited, and provision is made for reference of
| disputed questions in the District Court Judges
and for appeals from the District Courts to the
Circuit Courts, and from the latter in cases where
| the matter in dispute shall exceed two thousand
dollars, to the Supreme Court of the United
| States.
There are two kinds of bankruptcy contemplat.
| ed by the act; voluntary and involuntary. In the
former any person residing within the jurisdiction
| of the United States, owing over three hundred
dollars, and finding himself insolvent may apply
by petition to the Judge of the district in which
he has resided for the six months preceding the
date of the petition for the longest period dur
ing such six months, and shall thereupon be de-
| elared bankrupt-The creditors, having been
properly notified by the court, meet together and
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 ba W
proved their debts in case of failure to agree.
then by the District Judge, or where there ase no
opposing creditors, by the Register The whole
affairs oil the bankrupt pass into the hands of the
assignees, who have full powers granted them
necessary for the collection of all debts and the
final adjustment and closing up of the estate.
Stringent regulations are made for the proper de.
post and safe keeping of all MONEYS received from
the estate; and where delay is likely to occur
from litigation in the final distribution of the as
sets, the count is empowered TO direct their tempo
rary investment The bankrupt is liable at ali
times to be called up for examination on oath IN.
on all matters relating to the disposal or condition
of his property to his business transactions
and for good cause shown, his wife NAV in like
manner be compelled to attend as witness in the
case.
In the distribution Of the bankrupt's estate diyi.
dends are to be paid agreed upon by a majority
IN value of the creditors from time 10 time al
three months intervals but the following claims
are first to be paid in full First, the fees, costs
and all expenses under the Bankrupt act second
all debts taxes and assessments due to the United
States third, all State debts taxes and assess
ments; fourth, wages due to any operative, clerk
or house servant 10 an amount not exceeding fifty
dollars, for labor performed within six months pre
ceding the bankruptcy; fifth all debts due to any
persons who are or may be entitled to preference
by the laws of the United States. The voluntary
bankrupt Is entitled to his discharge provided no
fraud is proved against him at any time from sixty
days to one year after adjudication of bankruptcv.
but the proof of discovery of any fraud or con.
eeainent deprives him of the right to discharge
No person who has once received his DISCHARGE is
TO be entitled again TO become voluntary hank
rupt, unless his estate is sufficient to nav seventy
per cent. of his debts or unless three iourtbs tf
hls creditors assent in writing to his bankruptcy
Preferences and fraudulent conveyanees are de-
ciared void by the act and suitable provisions are
made for the voluntary bankruptcy Of partnerships
and corporations
The exemptions under the law are as follows;
The necessary household and kitchen furniture
and sneh other articles and necessaries Of snrb
bankrupt as the assignee shall designate and set
apart, having reference in the amount TO the fani
| iy, condition and circumstances of the bankrupt
but altogether not 10 exceed in value in any case
the sum of $500; and also the wearing apparel Of
such bankrupt and that of his wife and children.
| and The uniforms, arms and equipments of apy
person who IS or has been a soldier in the militia
or service Of the United States; and such other