The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1867-03-28
The General Bank Law.

The following is brief synopsis of the Cen
eral Bankrupt Law which has last been passed;
The jurisdiction in bankruptcy cases is Civ
en- bv the act to the several District Courts of
the United States, with the United States Cir
cult Courts acting in supervisory capacity as
Courts of Equity. The Judges of the District
Courts will be assisted in performance of the
duties imposed upon them by Registers in
Bankruptcy who are required to be counsellors
of those courts, or some Of the Courts OF Re-
cord of their several states. The power OF
the Registers is limited, and provision is
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, in cases where the matter in
dispute shall exceed 81 900, to the Supreme
Court Of the United States.
There are two kinds of bankruptcy cOntem-
plated 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 in
solvent, 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,
or for the longest period during such six
months, and shall thereupon be declared a
bankrupt. The creditors, having been proper
ly notified by the court meet together and ap.
point one or more assignees of the estate OF
the debtor; the choice to be made by the great
er part in value and in number of the creditors
who have proved their debts, or, in case OF
failure to agree, then by the District Judge, OF
where there are no opposing creditors, by the
Register. The whole affairs OF the bankrupt
pass into the hands of the assignees who have
full powers granted them 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 and
where delay is likely to occur from litigation
in the final distribution of the assets, the
court is empowered to direct their temporary
Investment. The bankrupt is liable at all
all times to be called up for examination on
oath upon all matters relating to the disposal
or condition of his property, or to his business
transactions, and for good cause shown, his
wife may in like manner be compelled to at
tend as witness in the case.
In the distribution of the bankrupt's estate
dividends are to be paid as agreed upon by =
majority in value OF the creditors, from time
to time, at three months intervals, but the fol
lowing claims are first to be paid in fall =
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 1ph+s and q fOnrtb
wages due to any operative, clerk or house
servant to any amount not exceeding fifty dol
| lars for labor performed within six months
preceding 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 dis
charge provided no fraud is proved against
him, at any time from sixty days to one year
AFTER adjucation of bankruptcy: but the proof
of discovery of any fraud or concealment de-
prives him Of the right of discharge. No
person who has once received his discharge is
to be entitled again to become a voluntary
bankrupt, unless his estate is sufficient to pay
seventy per cent Of his debts, or unless three
fourths of his creditors assent in writing to
his bankruptcy. Pre- 'erences and fraudulent
conveyances are declared void by the act, and
suitable provisions are made for the voluntary
bankruptcy of partnerships and corporations.
The exemptions under the law are as fol.
lows THE necessary household and kitchen
furniture, and such other articles as are nee
essaries of such bankrupt as the assignee shall
designate and set apart, having reference in
the amount to the family condition and cir
cumstances of the bankrupt, but not altogeth-
to exceed in value, in any case, the sum of
five hundred dollars and also the wearing ap-
parel of such bankrupt, and that of his wife
and children, and the uniforms, arms and
equipments of any person who is or has been
a soldier in the militia or in the service of the
United States, and such other property as now
is or hereafter shall be exempted from attach
ment or seizure, or levy on execution by the