The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1867-03-17
COLUMBIA.
Sunday Morning, March II, 1867.
The Bankrupt Law.

WV ""'S pSCA AIcuueutly iSheu
about this law and it's provisions.
1t is, however, too voluminous to
publish in our paper. So far, how
ever, as its provisions apply to vcl"2-
tary applications, the law is generally
understood; but those which give to
creditors the power to make their
debtors bankrupt are not so well
known. They are much more exten-
sive than like provisions in former
acts which have been in force in this
country, and Shey are important to be
understood.
The causes which will authorize o
creditor to proceed against his debtor
are given, in brief, rs follows by the
Philadelphia huqui,'er:
1. The voluntary departure of the
debtor from the State, District or
Territory, of which he is an inhabi-
tant, with intent to defraud his ere
ditors.
g. Concealment by debtor. to
avoid the service of legal process, in
any action of debt or upon demand.
3. Concealment or removal of pro-
perty, to prevent its being attached,
taken or sequestered on legal pro-
cess.
4. The assignment, gift, sale, con-
veyance or transfer of estate proper
ty, rights or credits, in this country
or abroad, with intent to delay, de-
fraud or hinder creditors.
5. Being arrested and held in Gus
tody under mesne process of execu-
ton for a debt valid and provable
under the bankrupt law exceeding
one hundred dollars, if such process
is not discharged by payment OF by
law within seven days.
6. Actual imprisonment by process
IN civil action upon demand ex-
ceeding one hundred dollars, founded
on contract, for not more than seven
days.
Z. The payment, gift or transfer,
sale or conveyance of property or
money to any person in contempla-
tlon of bankruptcy, the party being
bankrupt or insolvent at the time.
g. Giving warrant to confess
judgment, in contemplation of bank
ruptcy.
8. Suffering property to be taken
IN execution, or Oh legal process, with
an intent to give a preference to one
or more creditors.
10. Suffering property to be taken
IN execution, or upon legal process,
with intent to give preference to
endorsers, bail or suresies, with in
tent to delay or d feat the operations
of the act
IL. The fraudulent stoppage or
suspension, by a banker, trader or
merchant, Of payment Of his com
merclal paper, not resumed within
fourteen days.
The law provides that any person
liable for the acts designated may be
made a bankrupt within six months
after their preparation, on the pet
tion of one OF more of his creditors,
the aggregate of whose debts amount
to $3.50. Nor is this all; the trans
action which caused the bankruptcy
is void, and the assignee may recover
back property transferred or money
paid by the bankrupt; provided that
the person receiving it had reasonable
cause to believe that /; fraud vas in
tended, or that the debtor was insol-
vent. And furthermore. such person
so Implicated in the fraud, if ere
ditor, shall not be allowed to prove
his debt against the bankrupt, and
must lose it altogether.
1t Will be seen, therefore, that this
Act not only gives to the debtor, who
has been honest, but unfortunate, the
means for relieving himself from his
burden; but it guarantees to the Gre
ditor a remedy against fraudulent
practices; renders dispositions of pro-
perty in fayoritism and preference
void, and Furnishes not only the party
making such preferences, but him
who has to receive the benefit.
Against involuntary bankruptcy, or
ders of arrest and Imprisonment may
be issued, and they may either be
confined or made to give bail for
their appearance.
These regulations may affect busi-