The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1867-03-19
THE GENERAL BANKRUPT Law.

The follow ing IS an abstract of the General
Bankrupt Law passed by the Thirty ninth Con-
gress, aud signed by the President.
The jurisdiction in bankruptcy cases is given
by tie act to the several District Courts of the
United States, with the United States Circuit
Courts acting in supervisory capacity as Courts
of Equity. The Judges of the district Courts
W be assisted in the performance of the duties
imposed upon them by Registe in bankruptcy,
who required to be counsellors of those courts,
or of OF the Courts of Record of their several
States. The power of the Registers is limited,
, and prov ison 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 SUI
prelne Court of the United States.
There are two kinds of bankruptcy eontempla-
ted by the act; voluntary and involuntary. In
the former any person residing within the juris-
dicon of the United States, owing over three
hundred dollars, and finding himself insolvent,
may apply by petition to The Judge of the district
in which he has resided for the six months pre-
ceding the date of the petition or for the longest
period during such six months and shat. there
upon he declared a bankrupt. The creditors,
having been properly notified by the court meet
together and appoint one or more ignees of the
estate of the debtor; the choice to be made 10y
greater part III Falue ana IN nulnuer OF the
creditors who have proved their debts, in case
of failure to agree, then by the District Judge,
or where there are opposing creditors, 10y the
Register. The whole affairs of the bankrupt pass
into the hands of the assgnees, who have full
powers granted them Necessary for the collection
of all Leos and the final adjustment and closing
up of the estate. Stringent regulations are made
fol the proper deposit and safe keeping of all
moneys received from the estate; and where de-
| lay is likely to occur from litigation in the final
distlibutoa of the assets the court is empowered
to direct their temporary investment. The bank
rupt is liable at all times to be called up for ex-
animation on oath upon al 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 ofthe bankrupt's estate dvi-
dends are 10 he paid as agreed upon 10y MAORI
ty In value of the creditors, from time 10 time, at
three months intervals. but the following claims
are first to be paid in full: 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 debts, taxes and
assessments; fourth, wages due to any operative
clerk or house servant to an amount not exceed
| ing fifty dollars for labor performed within six
months preceding the bankruptcy; fifth, all debts
due to any persons who may he entitled
TO preference by the laws of the United Stales.-
The voluntary bankrupt is entitled to his dis
charge provided fraud is proved against him.
at any time from sixty days to one year after adj
publication of bankruptcy 4; but the proof or dis
covery ofany fraud or concealment deprives him
of the right to discharge No person who has
once received his discharge is to be entitled again
to become 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. Preferences and
fraudulent conveyances are declared void by the
act, and suitable. provisions are made for the
voluntary bankruptcy partnerships and corpo-
rations.
The exemptions under the law are as follows ::
The necessary household and kitchen furn-
ture, and such other articles and necessaries of
such bankrupt as the ass gnee shall designate
and set apart, having reference in the amount to
the family, condition and circumstances Of the
bankrupt. but altogether not to exceed in value,
in any case, the sum of $500 and also the wear
ing apparel of such bankrupt, and that of his wife
and children, and the uniform, aims and equip
ments 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 attachment or
seizure or levy on execution by the laws of the
| United States, and such other property, not in
cluded in the foregoing exceptions, is exempted
| from levy and sale upon execution or other pro-
cess order of court, 10y the laws of the State in
which tee bankrupt has his donicil at the time
of the commencement of the proceedings in bank
ruptcy to amount not exceeding that allowed
by such State exemption laws in force in the
| year 1864.
Acts of involuntary bankruptcy under the law
are classified as follows: Departure or absence
from the State where debts owed with intent
to defraud the creditors; conceamen. 20 avoid
service O process for the recovery Of debts con-
ceament of property to avoid seizure on legal
process; assignments designed to delay, defraud
or hinder creditors arrest and detention for seven
days, under execution for a debt exceeding one
hundred dollars; actual imprisonment for seven
days in civil action founded on contract for one
hundred dollars asst gnment, gift, confession of
Judgment or any other act 10y which preference
| is given to any creditor, endorser surety; dis
honoring commercial paper, or suspending and
not resuming paymen: for fourteen days. The
petition for adjudication of bankruptcy in such
cases may come from one or more creditors whose
debts reach two hundred and fifty dollars but
the petition must be brought within six months
after the act of bankruptcy has been committed.
In invountarily bankruptcy the proceedings are
made more stringent than in the other descrip-
ton of cases. The penalty for any fraud con-
cea!ment, direct or indirect, under the act, is i'm
ptisonment, with or without hard labor, for a
term not exceeding three years.
There are other details in the act, relating TO
the duties of the officers appointed and author
rod under tho law rho Of faas 6rc which