The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1869-05-13
From the Huntsville Independent.
InaDOrIant TO Debtors.

We are permitted to publish the following
letter from the Hon. j. w. Burke, Register
in Bankruptcy, of this District, giving a
clear and able exposition of the recent
amendment to the Bankrupt Act, which is
not generally known. This will be most
important intelligence to many persons
bound for security debts, which class is very
large. OF all those who have been obliged
to 70 into bankruptcy. over two-thirds be-
long to this class. For the remainder it will
be seen that the DOORS yet open.-Adyocate.
HUNTSVILLE, Feb. 6, 1869.
Dear Sir: / beg leave to acknowledge the
receipt of your letter of inquiry of the 3D.,
regarding the recent amendment OF the
Bankrupt Act, and take pleasure in giving
YOU the information you desire.
On the 9th of July, 1865. the Act was
amended to read as follows:
Sec. 80. ''In all proceedings in bankruptcy
commenced after the 1st day of January.
1869. no discharge shall be granted TO a
debtor whose assets shall not be equal TO
fifty per centum of the claims proved against
his estate upon 1rtich he shall be liable as the
principal debtor unless the assent in writing
of the majority in number and value OF his
creditors to tcbOB he shall hare become Hd0te as
the priaciDdI debtor, and who shall have
proved their claims to be filed in the case at
or before the time of the hearing of the APP
plication of discharge"
| 1t will be seen by the foregoing very inn
portant amendment to the Bankrupt Act,
That the class of debts known as security
debts" NAV be discharged in bankruptcy
where the proceedings have been commenced
after the 1st of January, 1859. As far as
this class of debts is concerned, the pro-
visions of the Bankrupt Law, as it existed
previous to the LIST of January, 1862, are
practically in force. In order to illustrate
this clearly, suppose person to owe debts
| amounting in the aggregate TO hVe thousand
dollars. OF this sum suppose five hundred
| dollars to be ''indiUidudl debts" and forty
| five hundred dollars TO be security debts,
or obligations for which he is not response
| bic as 'principdL debtor
| Should such person apply for the benefit
| of the Bankrupt Act, he may obtain dis
| charge under either of the following condi-
/ tons:
| First If his assets shall amount in value
/ to the sum of two hundred and fifty dollars
| Second. By obtaining the written consent
| of majority in number and value of those
creditors to whom he owes the five hundred
| dollars. and tcho haze proceed their debts.
| The law will discharge q bankrupt from
security debts" requiring only that his as
sets shall pay fifty per cent, of his personal
| debts.
| Or he may effect q compromise with hi;
| personal creditors who have proved theiI
| claims; obtain release from half in num-
| Der and in value of this class and be dis
| charged from all his debts. Therefore IN
insolvent is thus obliged to satisfy his in
dividual creditors only, while those to whom
| he is indebted for surety, bail or security,
| or in any manner for the debt of another.
are not protected by the law.
/ You will now see that your views are en-
tirely erroneous regarding the law which
| those bound for the debts of others.
Very respectfully,
/ L. S. Register in Bankruptcy.