The home journal. (Winchester, Tenn.) 1858-188?, 1867-03-16
uhn nnnkrupt Law.

N ny inc NV f' .", :,
n bankruptcy is given to the several Z
s. District Courts with the U. s. Cir
emit Courts acting in q supervisory ca
paci,y rs Courts Of Equality, an'
Judges of the District Courts will b
assisted by Registers In Bankruptcy
whose powers are limited, and pro
vision is made for reference Of dis
putcd questions to the District Cour
Judges, and for appeals from the Dis
trict Courts to tile Circuit Courts, ant
from the latter, in cases where thu
matter in dispute exceed two thousand
dollars, to the U. S. Supreme Court.
There are two kinds Of bankruptcy,
voluntary and involuntary. In the
former any person residing within the
U. $. jurisdiction, owing over $500,
and finding himself insolvent, may mp
ply by petition to the Judge of the
4 district in which he has resided for
the six months proceeding the date of
the petition. or for the longest period
during such six months, and shall
thereupon be declared q bankrupt. The
creditors, having been properly mott
fled by the court shall appoint one or
more assignees Of the estate of the
the debtor the choice to be made by
the greater part in value and in nun
Der of the creditors who have proved
their debts, or 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
assignces, who haze full powers grant
ed them necessary for the collection of
all debts, and the final adjustment and
closing up of the estate and where de-
lay is likely to occur from litigation in
the final distribution of the assets, the
court is empowered to directtheir tenn
porary investment. The bankrupt is
liable at all times to be called up for
examination on oath upon matters rcla-
ting to the disposal or condition of his
property or business transactions, and
for good cause his wife may in like
manner be compelled to attend as q
witness in the case.
In the distribution Of the bankrupt's
estate dividends are to be paid as
agreed upon by a majority in value of
the creditors, from time to time, at
three months intervals, but the follow
ing claims are the first to be paid in
full: First, the fees, costs and ex
penses under the act; second, debts
taxes and assessments due to tho U. S.
third, State debts, taxes and assess.
nents fourth, wages to any operative,
clerk or house servant to an amount
not exceeding $50 for labor performed
within six months preceding the bank
ruptcy fifth, debts due to any persons
who are or may he entitled to prefer
ence by the laws ofthe U. S. The VOL
untary bankrupt is entitled to his dis.
charge provided no fraud is proved
against him, at any time from sixty
days to one year after adjudication of
bankruptcy but the proof or discovery
of any fraud or concealment depriyes
him ofthe right to discharge. No per-
O who has onre received his discharge
is to be entitled again to become a vol
untary bankrupt, unless his estate is
sufficient to pay seventy per cent OF his
debts, or unless tllree-fourths OF his
creditors assent in writing to his bank
ruptcy. Preferences and fraudulent
conveyance are declared void by the
act, and suitable provisions are made
for the voluntary bankruptcy OF part
sncrships and corporations.
The exemptions are as follows:
The necessary household and kitch-
zen furniture, and such other articles
and nccessaries of each bankrupt as the
assignee shall designate and set apart,
having reference in the amount to the
family, condition and circumstances OF
the bankrupt, but altogether not to cx-
coed in value, in any cass, the sum OF
$500; and also the wearing apparel OF
such bankrupt, and that OF his wife
and children, and the uniform, arms
and equipments of any person who is
ar has been q soldier in the militia or
in the service Of the United States and
such other property as now is or here
after shall be exempted from attach
ment or seizure or levy on execution
by the laws of the. United States, and
such other property, not included II
the foregoing exceptions, as is exempt
ed from levy and sale upon execution
or other process or order of court, ny
the laws of the State in which the bank
rupt has his domicile at the time ofthe
commencement of the proceedings in
bankruptcy to an amount not exceed
ing that allowed by such State excmp
ton laws in force in the year 1874"
Acts of involuntary bankruptcy un'
der the law are classified as follows:
Departure or absence from the State
where debts are owed, with intent to
defraud creditors; concealmcnt to
avoid service of process for the recov'
cry of debt; concealment' OF property
to avoid seizure on legal process; as
signments designed to delay, defraud'
or hinder creditors; arrest and deten-
ton for sevcn days, under execution
for q debt exceeding one hundred dol
lars; actual Imprisonment for seven
DAYS in a civil action founded on con
tract for 800; assignment, gift, cor
fession ofjudgmcnt, or any other act
by which preference is given to any
creditor, endorser or surety dishonor-
ing commercial paper, or suspcnding
and not resuming payment for four
teen days. The petition for an adjudi
cation of bankruptcy in such cases may
come from one or more creditors whose
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