Indiana American., 1867-03-29
The General Bankrupt Law-Synopsis
of the Leadinu Features.

The jurisdiction in bankruptcy cases Is
given by the act TO the several District
Courts Of the United States, with the Uni
ted States Circuit Courts acting in super
visory capacity as Courts of Equity. The
Judges Of the District Courts will be as
sisted in the performance OF, their duties
imposed upon them by registers in bank.
ruptcy, who are required to be counsellers
of those courts, or some of the Courts Of
Record Of their several States. The pow
err of the Registers is limited, and provi-
ison is made for reference of disputed ques-
tons 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
exceed two thousand dollars, to the Su-
preme Court OF the unitcd States.
There are two kinds of bankruptcy con.
templated by the act--voluntary and in-
voluntary. In the former any person re-
siding within the jurisdiction of the u
nited States, owing over three hundred
dollars, and finding himself insolvent, may
apply by petition to the Judge OF the
district in which he has resided for the six
months preceding the date of the peii-
ton, or for the longest period during said
six months, aud shall thereupon be de-
clared bankrupt. The creditors, having
been properly notified by the court, meet
together and appoint one or more assign
ees 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, OF 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 bank
rupt pass into the hands Of the assignees,
who have full pwcrs granted them neces.
sary for the collection Of all debts and the
final adjustment and the closing up Of the
estate. Stringent regulations are made
for the proper deposit and safe keeping Of
all moneys received from the estate; and
where delay is likely TO occur from liti-
CATION in the Gnal distribution Of the as.
sets the court is empowered to direct their
temporary investment The bankrupt is
liable at all times to be called up for ex-
animation on oath upon all matters rela.
ting to the disposal or condition Of his
property or to his business transactions,
and for good cause shown his wife may in
like manner be compelled to attend as n
witness in the case.
In the distribution OF the bankrupt's
estate dividends are TO bo paid as agreed
upon by majority in value of the cred
itors, from time TO time, at three months
intervals, but the following claims are first
10 be paid in full : First, the fees, costs
and all expenses under tho bankrupt act
second, all debts, taxes and assessments
due to tho United States third, all State
debts, taxes and assessments wages due
to any operative, clerk or house servant
TO an amount not exceeding fifty dollars
for labor performed within six months
preceding the bankruptcy; fifth, oil debts
duo to any persons who arc or may be
entitled to preference by laws Of tho Uni
ted States. The voluntary bankrupt Is
entitled TO his discharge, providing no
fraud is proved against him. at any time
from sixty days to one year after adjudi-
cation Of bankruptcy hut the proof or
discovery Of any fraud or eoncealmen,
deprives him Of tho right TO discharge.
No person who has once received his dis.
charge Is 10 be entitled to again become
volutary bankrupt unless his estate is
sufficient to pay seventy per cent. on his
debts, or unless three. fourths OF his crod-
itors assent In writing to his bankruptcy.
Preferences and fraudulent conyeyancos