Dallas herald. [volume] (Dallas, Tex.) 1849-1873, 1867-04-06
The National Bnnkrnpt Law.

The new National bankrupt Law
which became n law on the last day
Of the 39th Congress, is very
lengthy document. We designed,
however, giving ii in full in our col
umns; but meeting with the follow
ing ample synopsis of the Act in
the New Orleans Picayunc, we give
it in preference to the full act;
Proceedings in bankruptcy shall
be instituted in the courts of the
United States, and concurrontty in
the Circuit Courts, the latter to have
supervisory power over litigated
cases in the District Courts.
The District Courts are TO be aid
cd by new class of officers called
Registers, to be appointed by the
Chief Justice of the Supreme Court,
one or more in each congressional
district. The function of registers
are to receive, adiudicatc upon, ap-
portion and distribute bankrupt
property.
Only citizens of the United States,
or those who have declared their in
tentions, are entitled to the benefits
of the act rs voluntary bankrupts,
and the amount ofdcbts must be not
less than three hundred dollars
The assignee is to be appointed in
the first instance by the creditors.
The articles exempted from assign
mont are
Necessary household articles and
furniture, to be determined by tho
assignee, having relation to the size
of the family and the condition of
the bankrupt, not exceeding $500
in value. -.
The wearing apparel of himself,
wife and children.
The uniform, arms and equip
ments of every person who has
been in tho service Of the United
States, in the army or the militia !;
Such other property as may be en-
cmptcd from seizure by the laws of
the United, or of any State, or ex-
empted from levy and sale under the
process of any State law existing in
1861.
The act, after providing how the
bankrupt effects shall be collected,
and how the rights Of creditors shall
be vested in them, proceeds to make
a rule of distribution among them
pro rata with the exception that the
following classes of debts shall be
first discharged in full
|. All the fees, costs and expenses
of all the proceedings including
the assignee's commission OF five
por cent. on all sums not exceeding
one thousand dollars, and two-and-
a half on the excess Of all sums over
five thousand dollars,
2. All debts and all taxes and as
sossments due to the United States.
3. All debts, taxes and assessments
due the State in which the proceed
ings in bankruptcy are had.
4. Wages ofoperativcs, and house
servants, not exceeding fifty dollars
in amount, accruing within the six
months preceding bankruptcy.
5. All debts which, by the law OF
the State, arc entitled to priority or
preference, are preferred, as though
this act had not been passed.
The foregoing provisions are gen
eral for the distributor Of the as
sets of all bankrupt estates. There
are, however, special provisions for
the conducting Of involuntary or
forced bankruptcy.
The definition in the law of those
persons against whom proceedings
in bankruptcy can be instituted by
creditors, is "Persons absent with
intent to dcfraud creditors, or who
take any method to forestail the le-
gal service of.ust and proved claims
against thom."
The course Of proceeding in such
cases is for the court to direct meet
ing of creditors, at which, if three
fourths in value of the creditors shall
report that the estate ought to be
wound up, the court will so order it;
the creditors may appoint trustee
or trustees for the purpose, and the
trustees may have the same power,
as the assignee in voluntary bank
ruptcy. If the creditors do not re-
port the resolution, or the courts do
not approve of it when filed, the
proceedings nevertheless go on, un-
der the general law, and the court
will issue its orders as in other cases
of bankruptcy.
The provisions against frauds or
concealmcnts by a bankrupt are We
ry severe. They are contained in
the following enumeration, in which
the nouns, verbs and adjective of
the English language have been put
on fatigue duty to stop up all the
crevices by which rogue of q bank
rupt could hope to make away with
any portion Of his property from
the use of his creditors
"If any debtor or bankrupt shall,
after the commencement of proceed
ings in bankruptcy secrete or con-
ceal any property belonging to his
estate, or part with, conceal or de-
stroy, alter, mutilate, or falsify, or
cause to be concealed, destroyed, al
tered, mutilated, or falsified, any
book, deed, document, or writing
relating thereto, or remove or cause
TO be removed, the same or any part
thereof. out of the district, or 9TH
erwise dispose Of any part thereof
with intent TO prevent it from com
ing into the possession Of the as
signee in bankruptcy, or to hinder
impede or delay either Of them in
recovering or receiving the same or
make any payment, gift, sale, as
signment, transfer. or conveyance
ofany property belonging to his es-