The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1867-03-20
Tae Bankrupt LlM

the only tendency ofthelr system OF legls-
Iasion was to bankrupt the nation, they
showed the only wisdom they have mani
Tested during the session by making some
provision for the escape OF the citizen.
The provisions OF the laware tooyolumi-
nous for insertion entire in our paper, but
it's importance demands a brief summary.
BY this law, the National Atetliguueer
states, that Stay Laws and all other State
laws in conflict with itare swept away.
By the law passed Jurisdiction in bank
ruptcy is given to the several U. S. Dis
trlct Courts with the US. Circuit Court
acting ina supervisory capacity as Courts
Of Equity. Judges Of the District Courts
viii be assisted by Registers i'll Bankrupt
cy, whose powers are limited, aud provision
is made for reference Of disputed questions
to the district Court Judges, aud for APP
peals from the District Courts to the Cir
cult Courts. and from the latter, in cases
where the matter dispute exceeds $4,000
to the U. S. Supreme Court. There are
two kinds Of MISUNDERSTANDING and
involuntary; in the former anybody resid-
lag within the U. s. jurisdiction, owing
over $500, and finding himself insolvcnt,
may apply by petition to the Judge OF the
District IN which he has resided for the
SIX months preceding the date Of his petit
ton or Tor the greaterportion CT that time.
and shall thegeupon be declared bank
rupt. The creditors having been properly
notified by the Court may appoint one Or
more assignees OF TIE estate u the debtor.
the choice to be s.aao by the greater part
III value and in number OF the creditors
who have proved their debts, and in case
OF Failure to agree by the District Judge,
orwhere there are no opposing creditors,
| by the Register. The whole affairs OF the
bankrupt pass into the hands Of the as
sguees, who have full power granted them
necessary for the collection OF all debts, and
the fiuaI adjustment and closing up Of the
estate and where delay is likely to occur
from litigation III the final distribution .oi
the assets, the Court is empowered to di
rect their temporary investment. The bank
rupt is liable at all times to be called for ex-
animation on oath upon matters relating
to the, disposition or condition OF his
property or business transactions, and for
good cause his wife may in like manner,
be compelled to attend as Il witness in his
case. In the distribution OF the bankrupt S
estate dividends are to be paid as agreed
upon by u majority in value Of the crcdi-
tors, from time to time, at three months
intervals, but TIE following claims have
priority and are to be paid in full: 1st,
ices, costs and expenses under the act; I'd,
debts, taxes and assessments due to the u.
s.. Sd, State debts, taxes and assessments f:
III, wages to any operative, clerk or house
servant, to an amount not exceeding S5u,
for labor performed within six months pre-
ceding the bankruptcy; 9Th, debts due to
any persons who are on may be entitled to
preference by laws Of the U. 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 adjudication Of bankruptcy;
but the proof or discovery OF any fraud or
concealment deprives him Of the right to
/ discharge. No person who has once re-
ceiyed Il discharge is entitled again to
become voluntary bankrupt, uHless his
estate is sufficient to pay ~ per cent, OF
his debts, OF unless three-fortlls Of his
creditors assent in writing to his bankrupt-
cy. Preference and fraudulent conyeyances
are declared void by the act, and suitable
/ provisions are made for. the voluntary.
bankruptcy of partnerships aDd corpor-
ations. The following property is exempt
ed under the act: 'sIhe necessary house
hold and kitchen furniture, and any other
articles and pecessaries OF such bankrupt
AS the assignees 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, III any case, the sum Of $500, and
also the wearing apparel Of each bankrupt.
and that Of his wife and children, and the
uniform, arms and equipments Of any per-
son who is Or has been a soldier in the
militia or in the service Of the e. States;
sand such other property as now is Or here
after shall be exempted from attachment
or seizure or levy OF execution by the laws
Of the IT, States, and such other property
not included in the foregoing exceptions
asis exempted from levy and sale upon exc
cution or other process or order OF Court
by the laws OF the States in which the
bankrupt has his domicil at the time Of
the commencement Of the proceedings in
bankruptcy to and amount not exceeding
that allowed BY such State exemption laws
in force in the year 1861"
Acts of involuntary bankruptcy are
classified as follows: Departure or alb
sence from the State where debts are
owed, with the intent to defraud credit
ors conceaiment to avoid service of pro-
cess for the recovery OF debt concealment
Of property to avoid seizure or legal pro-
cess assignments designed to delay, de-
fraud, OR hinder creditors; arrest and de
tention for seven days, under execution
for a debt exceeding 500; actual impris-
onment for seven days in civil action
founded on contract for S100; assign
nent, gift, confession Of judgment, or
any other act by which preference isgiven
to any creditor, cndorser, or suspending
and not resuniing payment for fourteen
days. The petition for an adjudication
of bankruptcy in such cases may come
from one or more creditors whose debt
| reach $3.50, but the petition must be
brought within six months after the act
| of banIruptcy has been committed Tn