Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1867-03-15
The Bankrupt Law.

| As the Bankrupt law is too lengthy for
our columns, we publish the following alb
stract of it, taken from the Baltimore Ga
zette, which will give our readers a very good
idea of the Law.
BY the law just passed, jurisdiction in
bankruptcy is given to the several United
States District Courts with the United States
Circuit Courts acting in a supervisory capac-
ity as Courts of Equity, and Judges of the
District Courts will be assisted by Registers
in Bankruptcy, whose powers are limited,
and provision is made for reference of dispu-
ted questions to the District Court judges,
and for appeals from the District Courts to
the Circuit Courts, and from the latter, in
cases where the matter in dispute shall ex-
coed So, 600, to the United States Supreme
Court.
There are two kinds of bankruptcy, vol
untary and involuntary. In the former any
person residing within the United States ju-
risdiction, owing over $500, and finding
himself insolvent, may apply by petition to
the Judge of the District in which he has re-
sided 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; may APP
point one or more assignecs of the estate of
the debtor; the choice to be made by the
greater part in value and in number of the
creditors who have proved their debts, or in
case Of failure to agree, then by the district
Judge. or where there are no opposing cred
itors by the Register. The whole affairs of
the bankrupt pass into the hands Of the as
signecs, who have full power granted them
necessary for the collection Of all debts, and
the final adjustment and closing up Of the es-
tate and where delay is likely to occur from
litigation in the final distribution of the as
sets, the court is empowered to direct their
temporary investment. The bankrupt is IL
able at all times to be called up for examina-
ton on oath upon matters relating to the dis
posal or condition Of his property or business
transactions, and for good cause his wife may
in like manner be compelled to attend as
witness in the case.
In the distribution of the bankrupts estate
dividends are to be paid as agreed upon by
a 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 expenses un-
der the act; second. debts. taxes and assess
ments due to the United States; third, State
debts taxes and assessments; fourth, wages
to any operative, clerk or house servant to an
amount not exceeding $50 for labor per-
formed within six months preceding the bank
ruptcy; fifth, debts due to any persons who
are or may be entitled to preference by the
laws Of the United States. The voluntary
bankrupt is entitled to his discharge provided
no fraud is proved against him, at any time
from sixty days to one year after the adjudi-
cation of bankruptcy, but the proof Or dis
covery of any fraud or coucealmcnt deprives
him Of the right to discharge. No person
who has once received his discharge is to be
entitled again to become voluntary bank
runt. unless his estate is sufficient to pay sew
entv per cent. of his debts, or unless three
fourths of his creditors assent in writing to
his bankruptcy
Preferences and fraudulent conveyances
arc declared void by the act, and suitable
provisions are made for the voluntary bank
ruptcy of partnerships and corporations.
The exemptions are as follows:
..The necessary household and kitchen
furniture, and such other articles and neces-
saries of such bankrupt as the assignee shall
designate and SET apart, having reference in
the amount to the family, condition and cir
cumstances of the bankrupt, but altogether
not to exceed in value, in any case, the sum
Of $500; and also the wearing apparel Of
such bankrupt, and that Of his wife and chill
dred, and the uniform, arms and equipments
of any person who is or has been soldier
in the militia or in the service of the United