Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1873-04-24
The Law of Bankruptcy.

|
a very different thing now from what it
was when a creditor had a lien not only on
all the past and prospective property of
| the debtor, but even on the persons of
the debtor himself, his wife and children,
all of whom might be sold for the Iiqui-
daton of claims. English novelists have
portrayed in graphic terms the charms of
| the sponging houses whose Israeitish
| hosts entertained no less distinguished
| persons than Mr.. MicaWbcr and Lady
| Maria Esmond, and probably an Amcri-
can of to-day feels better acquainted with
| Fleet street than with any other thorough
| fare in the English metropolis. And it is
only within the last luster that the glory
of that locality has faded away
| Until six wears ago this month the mat
ter Of bankruptcy in the United States
was one Of which the State courts took
| cognizance, and no two States regulated
the matter alike. The extreme inconven-
| fence of this state Of affairs led Congress,
i'll March, 1861, to pass a general bank
rupt act which puts all proceedings in
| bankruptcy into the Federal courts and
renders them uniform through the whole
| country. The registers in Bankruptcy are
officers, one in each Congressional Dis
trict, appointed to aid the Judges of the
district courts in bankruptcy cases. Any
citizen of the United States whose debts
exceed $500 has the right to declare him
self Il bankrupt by filing his petition to
that effect with the Clerk of the District
| Court, to which petition must bcappended
certain schedules setting forth the state of
! his affairs
This petition must be sworn to- and in
| the oath is included the oath Of allegiance.
| Sol l,,la 4 I'll nl-,.,, :,
| liabilities, arranged under five heads. \
l includes preferred claims, viz. debts,
| taxes and assessments due to the Federal
and State Governments, and wages due to
| clerks and operatives, to an amount not
exceeding fifty dollars, and for work rem
| dered within six months. \ 2 sets forth
all debts secured by mortgages, pledges,
liens or collaterals; \ ;, unsecured debts;
| 4 4, liabilities on notes and bills discount
ed, and \ ., accommodation paper.
| The petition, properly made out, having
| been deposited with the District Clerk the
matter is referred to the Register in Bank
| ruptcy, who examines the schedules, and
| finding them correct ccrtities to the fact,
and calls a meeting of the creditors.
! This meeting must be called for some
| day not less than ten. nor more than nine
ty, days after the filing of the petition.
Generally twenty days is the time allowed
| for the preparation of the case. The Reg
lister may accept, at the outset, the sllrren-
der of the property by the bankrupt, but
he cannot compel such surrender;
| though, if he thinks necessary, he may
appoint Waterman over the property
At this meeting the schedules are exam
med, claims presented, and an assignee is
elected. This assignee had as absolute
| and perfect control over the property as
had the bankrupt before the proceedings
began. He is to carry on the business in the
interest of the creditors, and convert the
property into money as fast as can be done
consistently with the interests of all con-
ccrned
Within twenty days the assignee must
make report to the creditors showing the
amount and condition of all property
which he has received, and all moneys
which he has received from the sales of
property, and at this meeting Il dividend
may be declared. In general, if there is
no dividend to declare no meeting is held
and the assignec's report is merely filed
with the Register. Certain articles belong
ing to the bankrupt are exempt from seiZ
| ure, viz: necessary kitchenand household
furniture to the extent of five hundred dol
| lars, and the wearing apparel Of the
family; also, such property as is exempted
| under State laws.
The business is generally finished at the
third meeting of the creditors, and the
bankrupt gets his discharge if no creditor
objects to it on the ground Of fraud or
error. However, the bankrupt cannot get
| discharge if his assets fail to pay fifty
per cent. of the proved claims, except by
the consent of a majority Of number and
Of IN of
subsequently, discovered fraud, the dis
charge may be contested in the United
States District Court at any time within
two years. If no debts can be proved, or
if no assets come into the hands of the
| assignee, the bankrupt may apply for his
discharge after sixty days and within one
year. But if debts have been proved, or if
assets have come into the hands Of the as
signee, the application must be made
after six months and within one year. No
person who has once been discharged can
be discharged for any subsequent bank
ruptcy if his assets do not pay seventy per
cent Of the proved claims against him, I'M
less he can show that he has paid up all
the deficits of the previous bankruptcy, or
can get the consent to his discharge of
three fourths of his creditors.
When a man is put into involuntary
bankruptcy the petition Is made by one OF
the creditors, and filed, as in the other
case with the Clerk Of the District Court.
Due notice of the petition is then given to
the other creditors and the debtor, and
hearing is had before the District Judge
If case of bankruptcy is made out the
Judge turns the matter over to the Regis
ter, and the affair proceeds as in voluntary
bankruptcy.
OF course the monkey must have alittle
of the cheese which he divides with such
care and impartiality among the avarici-
Gus cats. But his bites though frequent
are not large, and his share is far from
being that of the lion The law allows to
the Clerk of the Court for the issue of
every warrant two dollars; for each day
in which meeting is held, three dollars
for each order for dividend, tire dollars !;
for every order substituting a arrange
ment by trust deed for bank vptcy, two