The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-03-14
The Bankrupt Law-Its Nature-How
to Proceed under It

to Proceed under It
The recent act of Congress to establish
q uniform system of bankruptcy through
ont the United States will soon come home
to the individuals Of the community. 1t
is searching and direct, and must before
long excite a more lively interest and
keener scrutiny than at present. Debtors
and creditors alike must diligently study
its principles and experience its opera
tions. This act will not much longer per-
init the indifference or the apathy of debt
ors which has been allowed, if not en-
couraged, under our stay laws. Nor will
1t, on the other hand, permit importunate
or artful creditors to secure advantages or
preferences over other equally meritori-
Gus creditors.
A bankrupt law is essentially law for
the application of all the estate Of the
debtor to the payment of all his debts
equally, without distinction or preference.
1t treats all just debts as equally just and
equally entitled to payment. 1t regards
the debtor as trustee holding his proper
ty for the equal benefit of all his creditors,
and whenever he disregards his duty as
trustee in this sense, the law, by its pro-
cess, interposes and appoints new special
trustee to discharge these duties. This
interposition of special trustee is attend
ed with total displacement of the former
power and authority of the owner over his
property, and invests them in the officers
of the court for the speedy payment OF
his debts. These general principles are
especially illustrated in the cases of com
pulsory bankruptcy. In the case of vo-
luntary bankruptcy the debtor acknow-
lodges his inability to pay his debts, and
surrenders all his property to the law for
their satisfaction.
Bankruptcy, regarded as condition in
which a debtor cannot or will not pay his
debts, by reason of which his property is
legally transferred for the discharge of his
debts, comprises two classes under the
present act. These are voluntary and in
voluntary bankrupts. They are alike in
this, that both are Invested of their pro-
perty for the payment of their debts, and
that both, if not fraudulent, are entitled
to discharge from future liability for
them. And they are unlike in this, that
the voluntary bankrupt confesses his in
ability to pay his debts, and voluntarily
surrenders his property to the law to pay
them; whereas the involuntary bankrupt,
at the instance of his creditors, is COM
PEELED to surrender his property to pay his
debts.
This is the third bankrupt law enacted
by the United States Congress, and is the
most elaborate. 1t contains nearly three
times the number of sections in the act OF
lS4l. As law to be administered in the
Federal, and not in the State courts, our
State officials will be practically unknown
in its extensive and inquisitorial opera
tons. 1t confers jurisdiction upon the
District Courts of the United States, and
invests these courts with all the authority
and discretion to enforce the law upon all
persons within its operation with prompti-
tude and efficiency.
The District Court for the District of
Virginia, it is apparent, therefore, acquires
new Importance and influence. Its head
and its officials will be more frequently
seen and felt, as in more direct view and
contact with the people.
A cursory reading of the bankrunt act
viii satisfy any one that its provisions au-
thorize, andi administration will produce,
multitude Of officers, to be appointed by
thecourt ,and who will be dispersed through
out the State as assistants and ministers %
the court. All these officers will be clothed
with authority more or less extensive and
some must possess and exert cons;derah,.
influence even within the strict limits 80
Office. II Is Of great consequence ,hs.
these officials shall be capable and worthy
men.
The correctness Of these views NAV Ia
illustrsted-as well as the general onera-
ton Of the law-by indicating the course
approaching In bankruptcy.
FIRST. A petition TO the court is lled. II
by voluntary bankrupt, it shows that he
owes debts exceeding $500, the names and
residence Of his creditors, the whole of his
property, and his inability to pay his debts.
II by acreditor or creditors to the amount
OF at least s25O against an involuntary
bankrupt, the petition alleges against the