The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-03-14

decree Of bankruptcy, which relates back
20 an earlier date in some cases. This is
published, and terminates the debtors au-
thority over his property and credits.
Second. The court, either now or before,
appoints registers in bankruptcy to assist
the Judge. The judge is not restricted in
the number, but appoints one or more in
each congressional district in the State,
upon the nomination and recommendation OF
the Chief Justice Of the United States.
Each register, being counsellor of the
District Court or a court Of the State,
must take " the oath "[iron-cladl under the
act of July, 1862. The cases in bank
ruptcy are referred to such register as the
court may designate and before him most
of the business in bankruptcy will be trans
acted.
Third. Upon the decree of bankruptcy
creditors prove their debts, either in court
or before a register, and meeting of the
creditors is convened. At this meeting
the creditors who have proved their debts,
if majority in number and value agree,
may elect an assignee or assignees. lfnot
SO elected, the assignee will be appointed
by the court or the register. In this as
signee or these assignees are vested all the
rights and property of the bankrupt, for
the benefit of the creditors. The assignee
proceeds to convert the estate into money,
to ascertain the debts payable, and to pay
the same, under proceedings before the re-
gister or the court.
OF all the bankrupt's property but little
is exempted and left to him and his fami-
ly-namely, the necessary household and
kitchen furniture, and such other articles
and necessaries as the assignee shall desig-
nate, but not exceeding $500 in value in
any case, and also the wearing apparel of
the bankrupt, his wife, and children, the
arms and uniform Of United States SOL
der, and such other property as the United
States laws exempt from seizure or levy,
and such other property as by State launs
in 1864 was exempt from execution or
sale.
The distribution of the proceeds Of the
bankrupt estate, though generally to Gre
ditors without preference or priority, is to
limited extent subject to certain priori-
ties for the benefit of Government and a
few peculiarly deserving creditors. This
exception is contained in the 2Sth section,
as follows:
In the order for dividend under this
section, the following claims shall be entitled
to priority or preference, and TO be first paid
in full in the following order:
Ffrst.-The fees, costs, and expenses OF suits,
and the several proceedings in bankruptcy
under this act, and for the custody OF proper
w, as herein provided.
Second.-All debts due to the United States,
and all taxes and assessments under the laws
thereof.
THIRD ALI debts due to the State in which
the proceedings in bankruptcy are pending,
and all taxes and assessments made under the
laws of such State.
Fourth.-Wages due to any operative, clerk,
or house servant, TO an amount not exceeding
fifty dollars, labor performed within six
months next preceding the first publication OF
the notice of proceedings in bankruptcy.
| EIh.-All debts due 10 any persons who, by
| the laws of the United States, are or may be
entitled to priority or preference, in ike
| manner as if this act had not been passed /:
AliCdVS prOUided, That nothing contained in
this act shall interfere with the assessment and
collection of taxes by the authority of the
United States or any State.
Most of the contests likely to arise under
this law will be from the difficulty of de-
fining, and exposing, and Furnishing the
many acts of the debtor in contravention
of the law and therein deemed fraudu-
lent, and therefore are characterized as
acts of bankruptcy. These acts are too
numerous to be conveniently rected in
this article, and too technical for non- pro-
fessional readers unless explained by CON-
petent persons. 1t may be stated, however,
that no insolvent person, or any debtor in
contemplation of bankruptcy, is allowed
to do any act to delay or defraud his Gre
ditors, or to prefer one over another with
out mourning the consequences of bank
ruptcy on the petition of creditors who
may apply within limited time after such
act.
The estate of the bankrupt, instead of
passing to the assignee, as already stated,
may, by special provision, be committed
to trustee selected by the creditors
when assembled; in which case the trus-
tee, under q committee of the creditors,
will collect and disburse the estate as an
assignee should do. But while this seems
to allow the creditors to appoint the trus-
tee of their own choice, it is more seeming
than real; for it requires the concurrence
of three fourths in value of the creditors,
and the approval of the court.
The two-fold end or object of bank
ruptcy-surrender to the creditors and
discharge of the debtor-is at length
reached. The creditors obtain what we
have hastily described. To the debtor,
now bankrupt, when he has honestly be-
haved, and fully complied with the law, the
discharge is awarded by the court. Its form
is prescribed as follows:
DIsrRIcT CouRr OF THE UNITED STATES
DISTRICT OF -.-Whereas - has been
duly adiudged a bankrupt under the act of
Congress establishing uniform system OF
bankruptcy throughout the United States, and
appears TO have conformed TO all the require
ments of law in that behalf, IL is therefore or.
dered by the Court that said - be forever
discharged from all debts and claims which by
said act are made proyable against his estate,
and which existed on the - day OF -, on
which day the petition for adjudication was
filed by Tor againsp him excepting such debts,
If any, as are by said act excepted from the
operation of discharge in bankruptcy. Given
under my hand and the seal of the Court at
-, in the said district, this - day of -,
A. ID. -.
(Seal) -, Judge.