New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-11-27

was necessary to entitle the bankrupt to .
full discharge. 80
By giving the Information asked, you will
confer a great favor, and afford an add
tional cause for Thanksgiving to poor man
Our correspondent asks, substantially,
Can all oppressed by debts they are un-
able to meet, obtain discharge upon q
surrender of their property, without being
compelled to pay fly per cent upon such
indebtedness ?" We answer that by the
provisions Of the last amendment (July
IA, 1S7O), the fifty per cent clause was
adjourned from its previous limit to Jan'l-
airy l, 1S69-in other words, that to debts
contracted after January l, 1869, alone
does the fifty per cent clause now apply,
and even then to such only of that spe-
cific class as are proved under deposition
by the creditors.
We will suppose that our correspondent
has 5000 of liabilities contracted
since January l, 1869, and $4,000 con-
tracted before that date, and that his
assets consist, in value, of $1,000. The
maximum average of creditors proofs
against bankrupt's estate is about ten
per cent on the liabilities, so Indifferent
is the general creditor, as the bankruptcy
records in this district show. But say
that twenty per cent on the liabilities is
proved against the bankrupt's estate.
The proofs would without doubt embrace
quite as many Of the liabilities be-
fore as after January 1, 1869, but
admitting the proofs were all as to debts
contracted after that date, twenty per
cent ION 1000 would be only $4,000.
Assets to the extent of fifty per cent of
$4,000, or $1,000, is just what the insol-
vent has surrendered. This two thousand
dollars is ample then, since it equals fifty
per cent of the claims on the liabilities
contracted since January /, 1869. The
law says equal to-" not ''pay," and here
lies the prevailing misconception of it.
This two thousand dollars is not applied
solely to satisfy claims arising since Janu-
airy, 1869, but having reached the fifty per
cent measure IN amount of those claims,
is equally distributed between all the Gre
ditors who have made proof of claims on
liabilities, whether such liabilities were
contracted before or after January, 1862
The law contemplates no inequitable pre-
ference in behalf of creditors whose
claims date after January, 1869; it simply
employs their claims as a measure of the
assets required. If the assets be ade-
quate, the bankrupt is discharged from
all liabilities, whatever their date
Let it be understood, then, that our
correspondent has to pay fifty per cert on
neither the total of his liabilities, nor on
that portion of them that antedates JAN
uary, 1869, nor ON even that other por-
ton which was incurred after January.
1869. His assets can be distributed only
to those few who prove up their claims
against him., Such of these prored claims
as haze accrued since January, 1869, are,
when computed on fifty per cent basis,
to determine the strict amount of assets
needful in satisfaction. But this same
fifty per cent, when paid as dividend.
covers every proved liability, though it be
contracted before 1859. This distribution
may reduce the fifty per cent to an insig-
nifcant return on each separate claim,
but the fifty per cent demanded by the
act has, nevertheless, been answered. If
a claim of $500 on debt contracted
after january, 1863. and claim Of $500
on debt contracted before 1869, be
proved, the $500 is the basis. Fifty per
cent thereof is $3.50. which amount should
be propo't;onately disbursed upon the two
claims, without further reference to their
date.
We think we have fully answered the
question put by our correspondent.