Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-11-21
THE DATE OF, BANKRUPTCY.

An interesting and important question
under the Bankrupt law was adjudged
by the United States Circuit Court at
New York, lately. A person filed his
petition to be declared a bankrupt, and
about q month afterward borrowed S6,-
900. He was not declared q bankrupt
until about eleven weeks after the APP
~plication was made, and about twenty
days after the money was borrowed. In
the examination of the bankrupt, ABOUT
Eve weeks after the decree, inquiry was
made in reference to this borrowed sum-.
He declined to give any information up
on the subject, upon the ground that all
the proceedings would relate back to
the day of his petition, and that what
ever transactions had occurred previous
to that day were alone subject to in-
quiry. On the other hand, it was con-
tended that the bankrupt and his pro-
perty were liable until the decree Of
bankruptcy. The Registrar to whom
the decision was first referred, adjudgsd
that the questions were admissible, and
that inquiry might be made into the
transactions of the bankrupt after the
petition was filed. The court, however,
overruled this view of the case. 1t was
decided, among other things, as follows:
81. That the intent of the words in
the fourteenth section Of the act, that
the assignment shall relate back to the
commencement Of the proceedings IS,
that the property which was his at the
| time Of the commencement Of the pro-
ceedings,' and no other property, shall
vest in the assignee, and shall vest in
| him as of that date, no matter when the
assignment is executed.
O.. That unless the adjudication is
made. the filing Of the petition is not
the commencement of the proceedings,
whether voluntary or involuntary pro-
ceedings. 1t requires an adjudication
to make the filing of the petition of any
avail as a commencement Of proceed
ings but when the adjudication is made,
the filing of tho petition becomes tho
commencement of proceedings.
3. That when IN adjudication of bank
ruptcy is made, following the filing Of
the petition, the date Of the filing be-
comes the commencement of the pro-
ceedings, and it becomes the date from
which the assignee takes the property
which was the bankrupt's on that date,
and it becomes the date at which n debt
must be due in order to be provable
(subject to tho special provisions Of sec
ton 10Y, and the date at which a debt
must have existed to be discharged
This decision would seem to make the
date o ffling the petition movable. Acts
consummatsd after the filing, and before
the adjudication of bankruptcy, might
very seriously affect the position of the
applicant, and they might even prevent
him from being adjudged a bankrupt.
But upon the declaration Of bankruptcy
everything which occurs after the filing
of the petition by or against the bank
rupt ceases to be Of any Importance.
If one chooses to borrow on the day
after filing the petition, or enters into
business, either on cash or credit, pro-
yidcd the stock or funds come after the
petition is drawn, tho matter is Of no
Importance to creditors, who have only
to look to the date of the petition to
ascertain when they lose all claim upon
the debtor.