The Findlay Jeffersonian. [volume] (Findlay, Hancock County, Ohio) 1870-1881, 1873-05-02
THE Law OF BANKRUPTCY.

I The law Of bankruptcy, like al
9 other laws, has grown mellow viii
sge, snd is 8 very different thin!
now from what it was when q credi
D tor had lien not only on sll the pas
' end prospective property Of the
C debtor, but even on the persons o
B the debtor himself, his wife and chill.
dren, all OF whom might be sold fol
3 the liquidation Of claims. English
: nOvelists have portrayed IN graphic
) terms the charms of the spongine
house whose Israelitish hosts enter
tanned no less distinguished persons
than Mr. Micswber and Lady Maris
5 Esmond, and probably an American
5 OF to-day feels better acquainted witt
Fleet street than with any other thor
oughfare in the English metropolis
: And 1t is only within the last lustel
that the glory Of that locality hal
! faded away.
3 Until SIX years ago this month tn
> matter Of Bankruptcy in the Unite'
States was one of which the Stat
courts took cognizance, and no tw
i States regulated the matter alike
, The extreme inconvenience OF thi
state Of affairs led Congress, in March
1867, to pass general bankrupt &C
which puts all proceedings in bank
ruptcy into the Federal courts, snC
renders them uniform through tn,
whole country. The registers in bank
ruptcy are officers, one in each Con
gressiond District, appointed to sid
the judges of the district courts IN
bankruptcy cases. Any citizen ol
the United States whose debts exceed
$500 has the right to declare himself
a bankrupt by filing his petition to
that effect with the Clerk OF the Dis
strict Court, to which petition must
be appended certain schedules set
ting forth the state OF his affairs.
This petition must be sworn to, and
in the oath is included the oath Of al
legiance. Schedule A sets forth all
the bankrupt's liabilities, arranged
under five heads. A 1 includes pre-
ferred 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 rendered within six months. 4
2 sets forth all debts secured by mort
cages, pledges, liens or collsterals !;
A 3 unsecured debts; A 4, liabilities
on notes and bills discounted, and A
8, accommodation paper.
The petition, properly made out,
having been deposited with the Dis
trict Clerk, the matter Is referred to
the Register in Bankruptcy, who ex-
smines the schedules, and finding
them correct, certifes to the fact, and
calls a meeting Of the creditors.
This meeting must be called for
some days, not less than ten nor more
than ninety, days after the fling OF
the petition. Generally twenty days
is the time allowed for the prepare.
tion of the case. The Register may
accept, at the outset, the surrender OF
the property by the bankrupt, but he
cannot compel such a surrender; /;
though, if he thinks necessary, he
may appoint watchmsn over the
property. At this meeting the sched-
ules are examined, claims presented,
and an assignee is elected. This as
signee had as absolute and perfect
control over the property as had the
bankrupt before the proceedings be-
gan. 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 concerned.
Within twenty days the assignee
must make a 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 q dividend may be de-
clared. In general, if there is no
dividends to declare, no meeting is
held, and the assignee's report is
merely filed with the Register. Ger
tain articles belonging to the bank
rupt are exempt from seizure, viz.
necessary kitchen and househould fur
niture to the extent OF FIVE hundred
dollars, and the wearing apparel Of the
family; also, such properly as is ex-
empted under State laws.
The business is generally finished
at the third meeting of the creditors,
and the bankrupt gets his discharge,
II no creditors object to it on the
ground Of fraud or error. However,
the bankrupt cannot get a discharge
if his assets fail to pay fifty per cent
of the proved claims, except by the
consent Of majority of number and
value Of the creditors On account
of subsequently discovered fraud, the
discharge may be contested in the
United States District Court at any
time within two years. II no debts
can be proved, or il no assets come
into the hands OF the assignee, the
may apply for his discharge
after sixty days and within one year.
But if debts have been proved, or il
assets have come into the hands Of
he assignee, the application must be
made after six months and within
1ne year. No pslson who has once
been discharged can be discharged
ior any subsequent bankruptcy, if his
assets do not pay seventy per cent.
of the proved claims against him,
lnless he can show that ne has paid
lp all the deficits Of the previous
bankruptcy, or can get the consent
20 his discharge o!three .fourihs o. his
:reditors.
When o man IL put into involun
.sry bankruptcy the petition is made
1y one Of the creditors, AID filed, as
a The o:ber case, with the Clerk of
he District Court. Due notice OF
petition is then given 70 the other
,reditors and the debtor, and hear
ng is had before the District Judge. {
Il case Of bankruptcy is made out .
he Judges turns the matter over to ;
be Register, and the affair proceeds
g in voluntary bankruptcy.
OF course the monkey must have !
title OF the cheese Wh;ch he divides ,
With such care and impartislity /
mong the sVsric;ous cats. But ,
ia bitcs, though frequent, are
ot large, and his share is far
rom beng that OF the lion. The law
llows to the Clerk of the Court for
be issue OF every war ant, two dol
ars for each dsy IN which a meet ,
ng is held, three dollars; for each
rder for . dividend, three dollars
Or every order substituting an ar
by trust deed for bank
uptcy, two dollars for every bond
nth sureties, two dollars ; for every
ppointment for any meeting of cred
tors, one dollar; for every days
ervice while actually employed un-
er special order Of the Court, q
um not exceeding five dollars; for
lepositions, the usual fees; for every
IisSharge, when no opposition is
nsde, two dollars
All these have q priority OF claim
n the assets, and before any warrant
'sues, the petitioners must deposit
Ifty dollars with the clerk as surety
or their payment And, If the as
cts are not enough tc pay them, the
petitioners shall do so. Before
lividend is ordered the assignee shall
'ay TO the messenger for the service