The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1867-03-19
The Bankrupt Law.

ulutH CoHSreS was one eStaDHSnlnS unl- |
form system of bankruptcy throughout
the United States. The provisions of
this act are important now, and may be
more so in the future, when the unwise
and sectional action Of the minority par
ty now in power shall have yielded its le-
gitimate fruits The general features of
the bill, Cor the following synopsis of
which we are indebted to the Philadel-
phia Age, may be thus briefly stated. In
der its provisions, jurisdiction in cases of
bankruptcy is given to the several United
States District Courts. The Unitsa Statssl
Circuit Courts will act in a supervisory
manner as Courts of Equity, and Judges
of the District Courts will be assisted by
Registers in Bankruptcy, whose powers
are limited. Provision is also made for
reference of disputed questions to the
District Court Judges, and for appeals
from the District Courts to the Circuit
Courts, ,and from the latter to the Supreme
Court Of the United States,in cases where
the sums in dispute exceed Two thousand
dollars.
Bankruptcy is divided into two kinds,
voluntary md involuntary. Any person
residing in the United States owing over
three hundred dollars, and not being able
to pay the same, may become a voluntary
bankrupt, on application by petition to
the Judge of the District in which he re-
sides. The proceedings then are as fol.
lows:
"The creditors, having been properly
notified by the Court, meet together and
appoint one or more assignees of the es-
tate of the debtor; the choice to be made
by the greater part in value aud in num-
Der of the creditors who ..have proved
their debts,o OF in case Of failure 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 as
siguees, who have full power granted
them necessary for the collection of all
debts, and the final adjustment and clos
ing up of the estate; and where delay is
likely to occur from litigation in the final
distribution of the assets. the Court is
empowered to direct their temporary in
yestment. The bankrupt is liable at all
times to be called up for examination on
oath upon matters relating to the disposal
or condition of his property or business
transactions, and for good cause his wife
may in like manner be compelled to at
attend as witness in the case
A majority in value of the creditors OF
bankrupt can agree upon the dividends
to be paid at three months intervals. But
the law specifies certain claims and de-
mands which must FIRST be met and pro-
vided for as far as the assets will co.
They are thus enumerated: First, the
fees, costs and expenses under the act;
second, debts, taxes and assessments due
to the United States; third, State debts,
taxes and assessments; fourth, wages due
, any operative, clerk or house servant to
. an amount not exceeding fifty dollars, for
labor performed within six months prece
ding the bankruptcy; fifth debts due to
. any persons who are entitled to prefer
ence by the laws of the United States
If no fraud is proved against voluntary
bankrupt at any time from sixty days to
one year after adjudication of bankruptcy
he is entitled to legal discharge. Nc
person who has once received his dis.
charge is entitled again to become vol
untary bankrupt, unless his estate is suf-
ficient to pay seventy per cent. of his
debts, or unless three -fourths of his cred.
itors assent in writing tt, his bankruptcy.
. Preferences and fraudulent conyeyances
are declared void by the act, and suita
| bic provisions are made for the voluntary
Q bankruptcy of partnerships and corpora.
tions
The exemptions are as follows:
, "THe necessary household and kitchen
h furniture, and such other articles and ne
cessaries of such bankrupt as the assignee
shall designate and set apart, having ref
erence in the amount to the amount o.
the family, condition and circumstance;
l of the bankrupt, but altogether not tt
exceed in value, IN any case, the sum Of
Z $500; and also the wearing apparel O.
such bankrupt, and that of his wife and
|, children, and the uniform, arms and
4 equipments of any person who is or has
been soldier in the militia or in the ser
. vice of the United States, and such othe1
o property as now is or hereinafter shall b,
exempted from attachment or seizure o,
levy on execution by the laws of tn,
United States, and such ,other propert,
% not included in the foregoing exceptions
! as is exempted from levy and sale upol
, execution or other process or order o
. court, by the laws of the State in whicl
= the bankrupt has his domicile at the tim
= Of the commencement of the proceeding
: lin bankruptcy to an amount not exceed
ing ttat allowed by such State exemption
laws in force in the year 1864,
h The law classes involuntary bankrupt
Is cy under the following heads: Departur
"a for absence from the State where debts ar
owed, with intent to defraud creditors
4 conceament OF person to avoid process
!, concealment Of property to avoid seizur
on legal process; assignments designed t
delay, defraud, or hinder creditors; arres
and detention for seven days, under exc
cution for debt exceeding one hundre
dollars; actual Imprisonment for seve
le days in a civil action founded on con
g tract for one hundred dollars; assignment
). gift, confession of judgment, or any 9th
: er act by which preference be given t
AT any creditor, endorser or surety; dishor
oring commercial paper, or suspendin
and not resuming payment for fourtee
2 4 r.. .