Wilmington daily commercial., 1873-05-07
FIRST EDITlON. II [ !. :
Bankruptcy Proceedings.

HOW THE Law PROVIDES HOW YoUsdo IN AT ONE
END AND COME OUT or THE oTHER-NoTEs on
BANKRupToIEs IN DELAWARE SINCE 1867.
Dickens has left us several descriptions,
sketched with his quaint crayons, OF the process
of going through Bankruptcy in the British
Courts. The process in our American experience
is somewhat similar. Our Bankrupt Act was
passed in 1867, and took effect on June LIST. of
that year. From that date to January 1st. 1869
any unsolvent debtor could go into bankruptcy.
and by payment of the costs, only could receive
hnal discharge from all bis creditors after COM
plying with the necessary legal forms. Since
that date, however, debtor must pay at least
fifty per cent of the debts contracted since that
tlme, In order to receive an acquittance, unless
his creditors consent to discharge him upon pay
ment of less per centufn.
In this State, there have been, in ALL about 140
or lou bankruptcy cases, since the law went into
operation. or tht SO, by far the greater part
were previous to 1868, when q discharge could be
had without regard to the amount of the estate.
There were from ITO to 100 such cases. OF which
lour-hfths were from Kent and Sussex counties.
The parties were mostly ruined men, and few or
none OF them paid any dividend to their credi-
ltors, many finding il very difficult to even raise
the necessary amount of costs. number of
them are known to have been enterprisng and
energetic men, who had load of debt hanging
over them, and could net recommence business
until the Bankrupt Act gave them the opportun-
lty. AN extenblVe cotton manufacturer, and
large ship-buiider are instances of this, class
They are now % on their feet, again, and doing
we'll
Since 90 per cont. has been required, there
have been but twenty-six cases in all before the
Register, Of which nearly one-third were Fin
voluntary" or compelled by creditors (fn this
latter class of cases the debtor gets no discharge
at ALL ALI OF the voluntary bankrupts have
either paid fifty per cent, or received discharge
by consent OF creditors.
The costs of "going through" average about
$685., in plain case-that is. tho charges for
the oflicers-lawyers' fees are OF course, not in
cluded. Ii the claims are contested, and there
is trouble, they may go az high as $3.50. $500 is
exempted to the debtor by U. = law, and 5000
more by the State. The time required is usually
about three months, but in consequence of dis
puted claims, contested points of law, and ques-
tions OF usuriouH interest, some cases have ex-
tended to year or even eighteen months.
Claims tainted with usury are void under the
rules OF Bankruptcy, according to the State laws
II the creditors release upon payment of less |
than fifty per cent. the consent must include |
two-tbirds of them in number, and also two
thirds the amount of the established claims
The officers of bankruptcy proceeding, in Del |
sware, are Low q. Bird, Esq, the Register; |
Chas. g. Rumford Esq, Clerk of d. s. Courts;
and the U. S. Marshal, John NJ. Dunn. |
All these are young, active handsome, |
md obliging; it is their pleasure to /
make the way easy for those who wish to "go /
through" In tough cases that come before the /
,ourt, Judge Bradford br ings his aeumen to bear
lpon the knotty point. and opens its intrcacies /
o legal demonstration. Not many cases how
'ver come to his adjudication.