The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1867-03-09
The Bankrupt Law.

Below we print full synopsis of the ali
important general Bankrupt law, passed by
the Both Congress. 1t is a document Of
eighty pages, and therefore of too great
length for our columns; but in view of the
vast Importance of the law we have prepared
the following abstract of its contents:
Section I clothes the United States Dis
trict Courts with jurisdiction in cases of
bankruptcy
Section 2 gives Circuit Courts of the
United States general superintendent and
jurisdiction, and authorizes them to act as
courts of equity.
Section provides for the appointment
by the District Courts of one or more Regis
ters in bankruptcy in each Congressional
District, to assist the Judge.
Section defines the powers of the Regis
ter IN bankruptcy to make adjudication of
bankruptcy, to secure the surrender of any
bankrupt to administer Oaths, take proof of
debts, etc.
Section. 5 authorizes the Judges of the
District Courts to direct the attendance of
the Register at such place as they may deem
proper, and empowers the Judges to remove
the Register and fill vacancies.
Section 6 authorizes suitors to appeal
from the Registers to the Judges In cases of
dispute as to the law
Section provides for compulsory attend
ance of parties and witnesses
Sections 8, and 10 provide for appeals
and prescribes rules of practice.
Section II prescribes the method of avail
ing of the act
Any debtor whose debts, provabIe under
the act, amount to over three hundred dol
lars, may petition the District Judge of his
district stating his insolvency, his willing
ness to surrender his estate and schedule
under oath of his debts and his creditors,
with the nature of the debt in full, and an
inventory, also under oath, Of his assets.
Such petition shall be an act of bankruptcy,
and the petitioner be adiudged bankrupt.
The Judge shall thereupon issue warrant
Cor the Register, If there be no opposing
party,) directed to the United States Marshal
of said district, authorizing him to publish
the necessary notices, to-wit: l. That a
warrant in bankruptcy has been issued 2
That all payment Of debts to such debtor
are forbidden. 3. That a meeting of the
creditors to prove debts and choose assignees
will be held in court of bankruptcy, not
less than ten and not more than ninety days
after the issuance of the warrant
These notices are to be published in a
newspaper and served on each creditor.
Section II provides for a meeting of
Section l3 prescribes that the majority In
interest of the creditors, shall choose one or
more assignees: who, if approved by the
Judge, shall be qualified on giving bond.
Section ii directs that the Judge Tor if
there Is no opposing interest the Register,
shall convey to the assignee or assignees
the entire real and personal estate of the
bankrupt, but from this assignment are ex-
cepted household and kitchen furniture, and
such other articles as the assignees may in
dictate, not exceeding five hundred dollars in
value the wearing apparel of the bankrupt
and his family, his uniform and arms and
any other property hereafter exempted from
attachment or levy by United States laws.
Section Is, l6, II, IS present the duties
and powers and the methods of proceeding
of the assignees.
Section Is authorizes creditors to assert
and prove any contingent claim they nav
have against the bankrupt as drawer, en-
dOrser, surety, bail or guarantor, or as tenant
Section % provides for set offs in all cases
of probable claims
Section 81 prohibits any creditors of the
bankrupt from suing him after he avaiIs
himself Of the act
Section % provides the method Of proving
ciaims-that is, by producing legal evidence
before any Register in his district or, if the
creditor is non resident, before a United
States commissioner.
Section D, q and % respect details of
practice in the presentation and proof of
claims.
Section % authorizes the examination of
the bankrupt on oath by the courts, as to his
debts and assets, and requires his wife 10
attend and give evidence, If necessary
Section p prescribes that ali creditors
who prove their debts shall share alike, eI-
cept that wages to an amount not exceeding
fifty dollars, for services performed in the
preceding six months shall be paid In full
Section % prevents the priority Of debts
Section % allows the bankrupt, after six
months from the adjudication Of bankruptcy,
or if no debts or assets within sixty days, to
apply for bis discharge, which the court
after due notice, shall grant, If the bankrupt
has honestly exhibited his condition.
Section 80 prohibits second bankruptcy,
unless by consent Of creditOrs-except where
the assets amount to seventy per cent. Of the
debts.
Sections 81 to So concert details, pro
nounce against fraud and the Ike.
Section 80 provides for involuntary bank
ruptey, declaring that an absconding debtor.
q debtor who makes assignments to defraud,
against whom an unsatisfied execution for
over one hundred dollars stands. who makes
an assignment to give preference to special
creditors, or who has suspended, for four
teen days, the payment Of his commercial
paper, shall, on the petition Of any creditor,
be adjudged a bankrupt
The remaining sections, eleven IN num-
Der, prescribe the proceedings IN such case,
and prescribe the various fees and costs.