Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1873-04-12
XANDRIA, VA.
SATURDAY, APRIL II, 1873.

THE BANKRUPT LAW. In the case of Daniel
p. jones' of Lyuchburg, bankrupt, who claim
cd the homestead exemption, under the amend
cd bankrupt law, Judge Rivcs in the U. 5.
District Court has rendered decision, holding
the amendatory bankruptact to be constitution
al, and baukrupts entitled to the homestead
exemption provided by different State Con
situations, however variant they may be; also
that the exemption in Virginia must be allowed,
notwithstanding the decision of the Court OF
Appeals of this State against its constitution
atty. The case went off on the question Of
Jurisdiction, under peculiar circumstances, the
bankrupt having been previous j discharged,
and after such discharge claimed the ezemp-
ton. In his decision, Judge Rivcs says:
'sThe amendment to the brukrupt law, passed
March 8, 1873, is an extraordinary one 10 all
respects. 1t purports III part to be declara-
tory act. This court was aware that acts we're
occasionally passed by Parliament declaratory
of the common law, and unwrltten law, but an
act decIaratory of the meaning and purpose oil
= former act seems to be an anomoly, and IN
what it declares the law seems to have no mark
or special Significance But there Is another
feature of that act which is important. 1t not
only declares what the amendment of June,
1872, was intended to be. but it enacts what II
shall be. 1t must be held as giving to the
bankrupts in Virginia the bona tde homestead
proyided in the Constitution of 1868, and the
law made to secure it, What the homestead
privilege is, of course, depends on the law OF
the State as interpreted by the Supreme Court
Of Appeals Of the State, but the act OF Con
srcss approved March 3, 1873, makes some
changes in the homestead law Of Virginia. 1t
exempts it as against debts contracted before As
we'll as subsequently to the adoption ofthe Con
sttuton of 1868. This appears very reasonable
and proper 1t also exempts it against all liens
ofjudgnents in the State Courts. Why it had
not embraced also liens from deeds OF trust,
mortgage, &c, this Court cannot understand,
because it can see no superior sanctty 10 the
lien of deed of crust over that ola Judgment
of a Court of competent jurisdiction. But the
Court must take the law as it is written, and
give to the bankrupt IN proper cases his home
stead exemption against old as well as new
debts and against all liens of judgments in the
State Courts. Some general principles might
be indicated:
lst. 1t must be regarded as prospective il
its operations and speaking from the date OF 1t:
approval.
3D. The homestead exemption must be ad-
ministered as State exemption aDd in accord
ance with State law, except so far as the act o.
Congress may have changed the State law.
Sd. 1t canpot be allowed where the bankrupt
has been discharged, having no fund in the
hands of the Court, out Of which the allowance
may be made.
4th. 1t cannot be allowed where rights have
been vested. which it would be necessary tC
disturb, as for instance where a mans land:
have been sold for the benefit of creditors there
is no part Of the land to be exempted because
it has been sold, land the rights of the purchaser
must be respected, nor can the purchase money
be exempted because that has already been ad
judged rs belonging to the creditors.