Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1867-03-30
The General Bankrupt Law.

One of the acts of the Congress which
closed on the Fourth of March, was the pas
sage of general bankrupt law. This mea
sure has been agitated for several years past,
but has always failed to secure sufficient
support until this winter. 1t became law
during the closing hours of Congress.
The new law is intended for the relief of
honest debtors. Under its provisions, any
person whose debts exceed tue sum of three
hundred dollars, may become voluntary
bankrupt, and be relieved from the claims
of creditors by the delivery for distribution
Of all his assets.
The proceedings for the discharge of
bankrupts by this law arc p aced under the
supervision of the United States Circuit
Courts, with subordinate supervisory officer
to be appointed in each Congressional Dis
trict to be appointed by the Chief Justice of
the Supreme Court to be called a Register.
To the Register the party desiring to avail
himself of the relief of the bankrupt law
makes application, and by the creditors an
assignee is appointed into whose hands the
bankrupt turns all his property for distribu-
ton.
The bankrupt can reserve to himself
household and kitchen furniture and such
other articles as he may choose, not exceed
ing five hundred dollars, also the wearing
apparel of himself and family, and military
equipments if he had any, and such other
property as may be exempted from attach
ment and seizure under the laws of his State
Distribution of the assets of the bankrupt
is made in the following order all costs OF
the proceedings in bankruptcy; all debts
due the United States; all debts due the
State wages due to any employee of the
bankrupt for a period not exceeding six
months Immediately preceding the com
mcncement OF proceedings in bankruptcy
and to an amount not exceeding $4,000
The balance to other creditors according to
the amount of their claims, and without
preference on account Of date or any Other
cause.
The bankrupt then receives from the Court
a certificate of discharge and can commence
the world anew in business relations without
fear of old and unsatisfed judgements. Nc
bankrupt can avail himself a second time OF
the provisions of the law, unless his assets
will reach seventy per cent. of his debts. All
debtors whose claims have been credited by
failure in 6duciary capacity are precluded
from relief under this act.
The law is only intended for the relief oil
honest debtors. Hence, in order 20 avail
himself of its benefits. the party must make
a fair, full and bona tide delivery to the as
signee for the benefit of his creditors, of all
his effects, otherwise lie is debarred from
the benefit of the law, and made liable tc
heavy penalties beside. All fraudulent pro
ceedings designed to dcfraud creditors, and
all acts intended to prefer or secure one
creditor at the expense of any other, will not
entitle debtors to the relief extended by the
law, but are positively forbidden.
The law is of course very lengthy, and
embraces many details, but the above are
its Leading provisions. 1t will be well fol
the public to become familiar with and re-
member them, for they closely concern every
business man.