The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1867-03-14
The General Bankrupt Law.

V'he General ESzE n s<E'sSEsa saw
q ono iic A,es---...t1
idea of the nature of its provisions, and the
proceedings necessary to he taken thereun-
der by bankrupts who would avail them
selves of the privileges of the law:
There are two kinds of bankruptcy con-
templated 10y the act voluntary and iIvol-
UntaTy. In the former any person residing
within the jurisdiction of the United States,
owing over three hundred dollars, and find
ing hmselfiusolyent, may apply by petition
to the Judge Of the District in which he has
resided for the six months preceding the date
OF the petition, or for the longest period dur
ing such six months, and shall thereupon be
declared bankrupt The creditors, having
/ been properly notified by the court, meet
/ together and appoint one or more assIgnees
7 of the estate of the debtor; the choice to be
made by the greater part Ia value and III
number of sthe 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 aSsiguees, who have tuil
power granted them necessary for the colleC-
tion Of all debts and the final adjustment
aud closing up of the estate Stringent reg
uiat0ns are made for the proper deposit and
safe keeping ofall moneys received from the
estate and where delay is likely to occur
L
the assets, the court is empowered to direct
their temporary investment The bankrupt
is liable at all times to be called Up Tor eX-
animation on oath upon all matters relating
to the disposal or condition of his property
or to his business transactions, and, for good
cause show, his wife may in like manner be
compelled to attend as a witness in thu case.
In the distribution of the bankrupt's es-
tate dividends are to be paid as agreed upon
bya majority in value of the creditors, from
time to 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 70 any operative, clerk or
+ house servant to an amount not exceeding
/ fifty dollars for labor performed within six
months preceding the bankruptcy fifth, all
I debts due to any persons who are or may be
entitled to preference by the laws Of the l III
/ ted States. The voluntary bankrupt is en-
/ titled to his discharge, provided no fraud Is
/ proved against him, at any time from sixty
/ days TO one year after adjudication of bank
ruptcy; but the proof or discovery of any
I fraud or concealment deprives hin Of the
right to discharge No person who has once
received his discharge is to be entitled again
/ 70 become p voluntary bankrupt, unless his
I estate Is sufficient to pay seventy per cent of
I his debts, and unless three-feuTths of his
+ creditors assent in writing to his bankruptcy.
I Preferences and fraudulent conveyances are
declared void by the act. and suitable pro-
visions are made for the voluntary bank
rUptcy OF partnerships and corporations.
The exemptions under the law are as
+ oIlows:
The necessary household and kitchen fur
Uure, and such other articles and necessaries
| of such bankrupt as the assignee shall de
a1rEr ]
the amount to the family, condition and cir
cumstances Of the bankrupt, but altogether
not 10 exceed in value, in any case, the sum
OF $500 and also the wearing apparel OF
such bankrupt, and that of his wife and
children, and the uniform, arms and equip
ments OF any person who Is or has been 3
soldier in the militia or in the service of the
/ United States; aud such other property as
now Is or hereafter shall be exempted from
/ attachment or seizure OF levy on execution
by the laws of the United States, and such
other property not included in the foTego-
ing exceptions, as Is exempted from levy and
sale upon execution or other process OF order
OF court, by the laws Of the State in which
the bankrupt has his domicile st the time
of the commencement of the proceedings in
bankruptcy TO an amount not exceeding that
allowed by such State exemption laws IN
force II the year 1S64.
Acts of involuntary bankruptcy under the
Ia" axe cisAeslIletl as ioiAoWSs-AfepaIttiIe u
absence from the State where debts are owed,
| with intent TO defraud the creditors; conceal
ment to avoid service of process for the re
| coVery OF detG coneealment OF property 10
! avoid seizure on legal process; assignments
/ designed TO delay ,defraud or hinder creditors;
arrest and detention for seven DAYS, under ex-
ecatlon Tor debt exceeding one hundred dol
lars actual imprisonment for seven days in
civil action founded on contract Tor one
hundred dollars assignment, gift, comics
sion OF Judgment, or any other act by which
preference Is given to any creditor, endorseE
| or surety dishonoTing commercial paper, OF
suspending and not resuning payment for
fourteen days. The petition for an adjGdi-
cation OF bankruptcy in such cases may
| come from one or more creditors whose debts