Bloomsburg democrat. [volume] (Bloomsburg, Pa.) 1867-1869, 1867-03-27
THE BANKRUPT LAW.

Clrcult COuTts uctlng III Supo'''oo's '"P"S
ity as Courts of Equity, and Judges Of tn
District Courts will be assisted by Register
in Bankruptcy, whose powers are limited
and provision is made for reference Of dis
puted questions to the District Court Judges
and for appeals from the District Courts t'
the Circuit Courts, am from the latter, il
cases where the mo + in dispute shall ex
ceed $4,000, to the Cuited States Supreme
Court.
There are two kinds Of bankruptcy, vol
untary and involuntary. In the former any
person residing within the United States
jurisdiction, owing over $500, and finding
himself insolvent, may apply by petition tc
the Judge Of the district in which he has
resided for the six months preceding the
date of the petition, or for the longest period
during such six months, and shall thereupon
be declared bankrupt. The creditors hav.
ing been properly notified by the Court may
appoint one or more assignces 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 oppos-
ing creditors by the Register. The whole
affairs Of the bankrupt pass into the hands
Of the assignces, who have full power grant
ed them necessary for the collection of all
debts, and the final adjustment and closing
up of the estate and where delay is likely
to occur from litigation in the final ds,ribn.
ton of the assets the court is empowered
to direct their temporary investment. The
bankrupt is liable at all times to be called up
for examination on oath upon matters relat-
ing to the disposal or condition of his prop
crty or business transactions, and for good
cause his wife may in like manner be COM
PEELED to attend as witness in the case.
In the distribution Of the bankrupt's es-
tate 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 I'M
der the act second, debts, taxes and as
scssmcnts fourth, wages to any operative,
clerk or house servant to an amount not cx-
ceeding $50 for labor performed within six
months preceding the bankruptcy; 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 adjudication
of bankruptcy, but the proof Or discovery of
any fraud or concealmcnt dcprivcs him of
the right to discharge No person who has
once received his discharge is to be entitled
again to become voluntary bankrupt, un-
less his estate is sufficient to pay seventy
per cent. of his debts, or unless three-fourths
of his creditors assent in writing to his bank
ruptcy.
Preferences and fraudulent convcyanccs
are declared void by the act, and suitable
provisions are made for the voluntary bank
ruptcy of partnership and corporations.
The exemptions are as follows:
'rhe necessary household and kitchen
furniture, and such other articles and ncccs.
saries Of such bankrupt as the assignee shall
designate and set apart, having reference in
the amount to the family, condition and cir
cumstanccs of the bankrupt but altogether
not to exceed in value, in any case, the sum
of $780, and also the wearing apparel Of
such bankrupt, and that of his wife and
children, and the uniform, arms and equip
mcnts of any person who is or has been
soldier in the militia or in the service of the
United States; and such other property,
not included in the foregoing exceptions, as
is exempted from levy and sale upon execu-
ton or other process or order Of court, by
the laws Of the State in which the bankrupt
has his domicile at the time of the COM
menccment Of the proceedings in bankruptcy
to an amount not exceeding that allowed by
such State exemption laws in force in the
year 1854"
Acts Of involuntary bankruptcy under the
law are classified as follows: Departure or
absence from the State where debts arc
owed, with intent to deiraud creditors con-
cealment to avoid service Of process for the
recovery of debt; concealment of property
to avoid seizure on legal process; assignment
designed ~ delay, defaud, or hinder credi-
tors, arrest and detention for seven days, un-
der execution for debt exceeding one hun
drcd dollars; actual imprisonment for seven
days in civil action founded on contract
for one hundred dollars; assignment, gift,
confession Of judgment, or any other act by
which preference is given to any creditor,
endorser or surety; dishonoring commercial
paper, or suspending and not resuming pay.
ment for fourteen days. The petition for
an adjudication Of bankruptcy in such cases
may come from one or more creditors whose
debts reach two hundred and fifty dollars,
but the petition must be brought within six
months after the act Of bankruptcy has been
committed. In involuntary bankruptcy the
proceedings are more stringent than in other