The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1868-03-10
The Bankrupt Act.

rupt Law. This is impossible 1t makes re-
| spectacle volume. In order, however, that our
readers may understand it, and may therefore
not be liable to be imposed upon by parties who
are Indifferent to the interests of others, we have
| taken some pains to compile from several sources
| the following general principles of the Act. for
| the benefit of all who contemplate seeking les
benefits. But first of all, we advise our friends
not to determine hastily what they will do, until
| they have had the counsel of respectable and
intelligent Attorney, upon whom they can rely.
l.. The manifest design Of the Bankrupt Law
| is to benefit honest, but unfortunate, debtors,
whose just liabilities are greater than they can
| pay
2. To become voluntary bankrupt under this
Act the debtor must owe at least $500, which, of
| ovarse, he rs not able to pay in full ,~@
| 3. Petitioners under the Bankrupt Act are
| required to render a schedule of all their debts
| and liabilities, of euery kind and description
aohatever, and also an inventory of all their es-
| tate, both real and personal, including all pro-
perty and effects of which they are possessed, or
in which they may have an interest (though not
in possession) in conformity with certain "Forms"
prescribed in the General Orders" of the Su-
preme Court of the United States These
schedules, verified by the oath of the petitioner
before District Court Judge, Register in Bank
ruptcy, or U. S. Commissioner, must accompany
the petition, and, when filed, is the commence
ment of proceedings in Bankruptcy. fit should
be found out, pending the proceedings at any
time before the bankrupt is discharged, that he
has, by any shift or subterfuge made false or
partial schedule, this would be evidence of fraud
and would defeat his discharge.
4. When the petition is by firm or copart-
nership, full set of schedules of the respective
estates of the members Of the firm should also be
added
5. When the petition is filed, the case is i'm
| mediately referred to a Register, who examines
| the petition and schedules annexed thereto, and
if they are correct in form, makes certificate to
that effect, to be filed with the Clerk, then ad-
Judges the debtor Bankrupt and issues war
rant to the messenger to summon all the creditors
named in the petitioners schedule to meet at the
Registers Office, at certain time and place, to
prove their claims and elect one or more AS
sgnees to take charge of the Bankrupts estate.
6. A creditor can, however, prove his claim at
any time previous to the last dividend which
| will generally be six months subsequent to the
adjudication Of Bankruptcy. .s.
Z. No creditor has any standing in Bankrupt
Court until he proves his claim.
s. Creditors have no right to compel the Bank
rupt to answer questions concerning the disposal
of property by him acquired subsequent to filing
! a petition in Bankruptcy. ain other words the
date of the filing of the petition by or against a
debtor, is the date at which, if adjudication of
bankruptcy follows, the old order of things passes
! away and leaf is turned over" On this
point decisions have been variant. The safe rule
appears to be, that the applicant in Bankruptcy
has perfect right to claim whatever he has made
! but any profits he may have made from invest
ment or credit, may be liable to the claim of the
receiver up to almost the period of his discharge
! 9. The Bankrupt can apply to the Court at
| any time after the expiration of six months and
within one year from the adjudication, for the
discharge in bankruptcy, and in case no assets
come into the hands of the assignee, or no debts
be proved against his estate, at any time after
| the expiration Of sixty days.
| 10. AS soon as an Assignee is elected or ap-
pointed, the Judge or Register will convey to
| HIM by deed of ssignment, all the bankrupt's
property except what is exempted, viz: House
| hold and kitchen furniture and other necessares
not exceeding in value (S500) five hundred dol
lars also his wearing apparel and that Of his
wife and children, and such other property not
included in the foregoing as is exempt from levy
and sale upon execution or other process by the
laws of the State in which the bankrupt resides,
to amount not exceeding that allowed by State
|
Counsellor suggests, under This head that the
common impression that persons may become
bankrupts and yet be allowed to retain their
houses and lands, or other property of consider
| able value, is great mistake. Under the Act,
no honest Bankrupt in this State can have al
lotted to him. free from the operation of the Act,
| exceeding 500, besides the wearing apparel of
himself and family Bankrupts in this State are
not entitled to homesteads under this Act.
II. 1t is the duty of the Assignee, within
twenty days after the assignment to him is made,
to allot to the bankrupt such articles as are ex-
empted, and file an inventory of the same with
the value of each article so allotted and creditors
may make objections to the report of the AS
| signee at any time within twenty days after it
| is filed.
II. AS to costs in bankruptcy proceedings,
section 46 of the Bankrupt Act provides that the
petitioner before a warrant issues, shall deposit
| fifty dollars with the Register or with the Clerk
to be delivered to the Register as security for
! his fees. General order xxx provides that
the fees of the Register. Marshal and Clerk shall
be prepaid or secured before they can be COM
PEELED to act. 1t is also provided by General
order XXX, tkat where the debtor has no
means, and can prove the fact to the satisfaction
of the Court, upon application, an order viii be
made requiring all the costs in the to be
paid out of the fifty dollars deposited with the
Register. If, however, there are assets, but not
enough to pay the Messenger after deaucting
the Bankrupt's exempted property, so that moth
| ing comes into the hands of the Assignee, sshe
fees will have to be paid by the Bankrupt; but
if the Assignee receives assets, the fees of the
Messenger will be paid by him before any divi-
| daud iS made amanO creditors