The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1867-03-15
The National Bankrupt Law.


| Messrs. Eldredge, Paine and Sawyer, OF
this state voted against the new bankrupt
law--for good reasons. The bill revives
imprisonment, under certain circumstance S,
and places every western debtor at the
mercy OF his eastern creditors, since the
latter may compel the former to close up
business and make bankrupt of himself
on the slightest pretence. The chances are
that our lawyers will have an abundance of
business under it. Annexed is synopsis
of its main provisions
The jurisdiction in bankruptcy cases is
given by the act to the several district
court of the United States, with the Uni
ted States circuit courts acting in super
visory capacity as courts of equity. 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 he counsellers of those
courts, or some of the courts of record Of
their several states.
There are two kinds of bankruptcy con-
templated by the act voluntary and invol-
untary. Acts Of involuntary bankruptcy
uUucT Tic law arc Ctd~SluCu dS lOilOWS LIZ
parture or absence from the state where
debts are owed, with intent to defraud the
creditors; concealnent to avoid service OF
process for The recovery of debt; conceal.
ment OF property 70 avoid seizure on legal
process assignments designed to delay,
defraud or hinder creditors; arrest and de-
tention for seven days, under execution for
debt exceeding one hundred dollars
actual imprisonment for seven days in !;
civil action founded on contract for one
! hundred dollars: assignment, gift, confes-
sion of judgment, or any other act by which
preference is given to any creditor endorser
or surety dishonoring commercial paper,
Or suspending and not resuming payment
for fourteen days. The petition for an add
judication of bankruptcy in such cases may
come from one or more creditors whose
debts reach two hundred and fifty dollars.
In involuntary bankruptcy the proceedings
are stringent The penalty for any fraud
or concealment. direct or indirect, under
the act, is imprisonment, with or without
! hard labor, for term not exceeding three
years.
In the former any person residing within
the jurisdiction of the United States, own
ing over three hundred dollars, and finding
himself insolvent, may apply by petition to
the Judge of the district in which he has re-
sided for six months preceding the date OF
petition. or for the longe.t period during
such six months, and shall thereuron be
declared a bankrupt. The creditors hav
ing been properly notified by the court,
meet together and appoint one or more as
signees Of the estate Of the debtor the
choice to be made by the greater part in
value and number of the creditors who
have proved their debts, or in case of fail,
ure to agree, then by the district judge. or
where there are no opposing creditors, by
the register. The whole affairs of the
bankrupt pass into the hands of the assign
ees, 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 deposit and safe keeping of all
moneys received from the estate; aud where
delay is likely to occur from litigation in the
final distribution of the assets the court is
empowered to direct their temporary invest
ment. The bankrupt is liable at all times
to he called up for examination on oa up
on all matters relating to the disposal or
condition of his property or to his business
transactions, aud, for good causes shown,
his wife in like manner be compelled to
attend as witness in the case.
In the distribution of the bankrupt's
estate, dividends are to be paid as agreed
upon by a majority in value Of the creditors,
from time to time, at three months inter
walls, but the following claims are first to be
paid in full First, the fees, cost and all ex
penses under the bankrupt act second, all
debts taxes and assessment due to the
United States third, all state debts, taxes
and assessments; fourth, wages due to any
operative, clerk or house servant to an
amount not exceed ding fifty dollars for labor
performed within six months preceding the
bankruptcy; fifth, all debts 10 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 bankruptcy
but the proof or discovery of any fraud or
concealment deprives him of right to dis.
charge, No person who has once received
his discharge is entitled again to become a
voluntary bankrupt, unless his estate is suf-
hclet to pay seventy per cent. of his debts,
or unless three fourths of his creditors as
sent in writing to his bankruptcy. Prefer
ences and fraudulent conveyances are de-
clared void by the act, and suitable provis-
ions are made for the voluntary bankruptcy
of partnerships and corporations. The ex-
emptions under the law are such property.
as is exempeted from levy and sale upon ex-
ecutlon or other process or order of court,
by the laws of the state in which the bank
rupt has its domicile at the time of the
commencement of the proceedings in bank
ruptcy to an amount not exceeding that al
lowed by such state exemption laws in force
in the year 1864.