The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1868-01-29
For the anderson Mtelligencer.
INVOLUNTARY BANKRUPTCY.

compendious statement OF the Law IN relation TO
Involuntary Bankruptcy, which, trust, will not
be Improbable to those who may be pleased to e1-
anime it. We are not commercial people in this
part Of the State, and, therefore, the law as it
is, has not been heretofore extensively resored to
as measure of relief from the Indebtedness which
burdens our people.
The prevailing opinion among them seems to be,
that the design of the Act was simply to afford re-
lief to such insolvent persons as might see proper
to apply for the benefit of its provisions, which is
termed Voluntary Bankruptcy; but there is also
what is called Involuntary Bankruptcy, and it is to
this branch of the subject that have confined the
abstract of authorities The law is too volumi-
nous to be examined, or understood, except by
lawyers, who have the time to devote to its study
and it is in the hope that some information of
valuable nature may be presented in readable
form, that have attempted to comply with your
request.
The 39th Section of the Act provides 'ihat any
person residing and owing debts aforesaid, who,
after the passage OF this Act shall depart from The
State, District, or Territory, of which he is in
babitant, with intent 10 defraud his creditors, or,
being absent, shall, with such INTENT remain ab-
sent or shall conceal himself TO avoid the service
of legal process any action for the recovery Of
q debt or demand provable under this Act; or
shall conceal or remove any of his property to avoid
its being attached, taken or sequestered on legal
process: or shal make any assignment, gift, sale,
conveyance or transfer of his estate, property,
rights, or credits, either within the United States
or elsewhere with intent to delay, detraud, or hin
der his creditors; or who has been arrested and
held in custody under or by virtue of mesne pro-
cess of execution, issued out of any court of any
State, District, or Territory, within which such
debtor resides or has property, founded upon de-
mand in its nature provable against bankrupts
estate under this Act and for sum exceeding one
hundred dollars, and such process is remaining in
force and not discharged by payment, or in any
other manner provided by the law Of such State,
District, or Territory applicable thereto for Pc
riod of seven days; or has been actually impris-
oned for more than seven days IN civil action,
founded on contract, for the gum of one hundred
dollars or upwards or who, being bankrupt or in
solvent, or in contemplation of bankruptcy or in
solvency, shall make any payment, gift, grant,
sale, conveyance, or transfer of money, or other
property, estate, rights, or credits, or give any
warrant TO confess judgment. or procure or suffer
his property to be taken on legal process with in
tent 10 give preference to one or more OF his
creditors, or to any person or persons who are or
may be liable for him ndorsers, bail, sureties,
or otherwise, or with the intent, by such DISPOSE
ton of his property, to defeat delay the opera
ton of this Act; or who being banker, mer-
chant, or trader, has fraudulently stopped or sus-
pended aud not resumed payment OF his CONNER
cial paper within period of fourteen days, shall
be deemed TO have committed an act of bankrupt
cy, and subject to the conditions hereinafter pre-
scribed, shall be adjudged bankrupt, on the Pc
ttion of one or more of his creditors, the aggre-
gate of whose debts provnble under this Act
amount to ut least two hundred and fifty dollars
provided such petition is brought within six months
after the act of bankruptcy shall have been com
mittcd. And if such person shall be adjudsed
bankrupt, the assignee may recover back the mon
ey or other property so paid, conveyed, sold, as
signed, or transferred contrary to this Act provi-
ded the person receiving such payment or convey
ance had reasonable cause TO believe that fraud
on this Act was intended, or TINT the debtor was
insolrent; and such creditor shall not be allowed
to prove his debt in bankruptcy"
Many of the above Acts of Bankruptcy arc Pc
nal in their operation, subjecting the bankrupt,
upon conviction, to punishment by Imprisonment,
with or without hard labor, for q term not exceed
ing three years. In order to force debtor into
bankruptcy it must be observed, that the creditor
must apply by petition for on adjudication within
sir months from the commission Of the act Of bank
ruptcy.
AS the object of this communication is to show
the creditor what are his rights under the law, and
to enable the debtor, who does not desire to be
forced into bankruptcy, to avoid the commission OF
any of those acts Which would subject him to the
provisions of the law, it may be well to notice
some of the decisions which have been made touch
ing acts of bankruptcy. AS no extended notice
can be taken of them, only those will be mention
ed which are Of ordinary occurrence, and are cal
culated to show the nature and character OF the
Act Thus, departure from the State, or remain
ing of the State being absent, with intent to de
feat or delay creditors, is strong evidence of an
intention TO dcfraud creditors within the meaning
of the Act. So, if party, having committed
crime leaves the State, the law will infer such in
tention and voluntary departure for the short
est time, with such intent, will be sufficient. Much
less than leaving The State will make him rcsonsi-
bic for an act OF bankruptcy-as when deb:or
goes to neighbor's house, and conceals himself,
to avoid arrest, and returns home as soon as the
officer is gone or, when being applied to by his
creditor for payment, he leaves his house under
pretence of getting money, which he fails to do.
So where The debtor sells and conveys his proper
ty, and is afterwards permitted to remain in pos
session. or, where he sells 1t at an differentiation,
and the creditor has notice, from the nature of the
transaction, that fraud creditors is intended,
such sale is an act of bankruptcy. So in this
State, where n dcbto. conveyed his property to his
mother, just before the term Of Court ut which
several judgments were rendered against him, and
there was no proof of any consideration, except
the evidence of the debtor, it was held to be q
fraud OIL creditors, and it is, therefore, nct of
bankruptcy.
1t may be important to take particular notice of
what arc deemed TO be fraudulent preferences to