The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1873-05-01
Impoytant TO Haukrunts

LYNCuBURG, Va, April 70, 1873
70 tie Editor Of The News The recent decision
of Judge Rves, of the 9th of April, 1878. in the
matter Of D P Jones, Bankrupt, in its bearing
upon the exemptions to be allowed persons now
going into Bankruptcy, is considered by several
parties now taking the benefit Of the act. against
whom suits for the sale of real estate have been
brought in the State Courts, from the exemption
Of The Virginia Homestead by the Bankrupt
Court, upon the ground that the jurisdiction OF
the State and District Courts is concurrent, and
that the District Court will not interfere after nr
isdicton has been taken in the State Court by the
institution of chancery suit for the sale ofland,
the owner going into Bankruptcy subsequently to
the commencement of such suit To show how
erroneous and mistaken this view is, it is only
necessary to state the action of Judge Rives, up
on a case filed since the rendition of the decree
in Rev. D. P. Jones. involving this very point
aud going much further.
On The l4th of April 1878, as shown by the
records of the District Cour. in this city. petit
tioa for adjudctlon in Bankruptcy was filed by
N. l.. Mayo and on the 10Th of April 1878, said
Bankrupt filed petition praying that the Com
missioner Of the County Court Of Botetourt b. en-
joined and restrained from selling his real estate
valued at $1,000 under decree of said County
Court OF November l4th, 1872, long before petit
toner went into bankruptcy. The only ground
the Bankrupt set forth why the injunction sh ould
be granted. was that he was entitled to the land
or Homestead in Bankruptcy. Upon this PEI
titon an order was issued by Judge Rives on the
10th April 1873, injoining the sale Of the land
by the said Commissioner
1t is idle TO suppose that when the only ground
alleged for an injunction was claim of Home
stead, Judge Rives would restrain the commits
siener from making sale unless he consider the
Bankrupt entitled to the property as Home.
| stead Exemption. Il is therefore perfectly man
if:st that the mere fact Of instituting chancery
suit in State Court for the sale Of real estate,
does not in any way affect the right to Home
stead ola party going into Bankruptcy. and it is
equally clear at even if his real estate has been
decreed t. be sold by a State Court such persons
can. by going into Bankruptcy, stop the sale, and
obtain his Homestead. The reason why the
District Court in all cases similar to that of Mayo,
is compelled to take jurisdiction to the exclusion
of the State Courts is readily explainable. I'm.
der the Bankrupt act of 1867. the jurisdiction oil
the State and Federal Courts was concurrent,
and that which first took jurisdiction, proceed
ed to sell the real estate Of the Bankrupt and
distributed the proceeds
The amendment of march Sd, 1873, gave to the
Bankrupt in Va, Homestead of $1,000 regard
less of prior debts aud liens by judgment and de-
erees. The Court of Appeals of Virginia has de-
clared the retroactive feature Of the Homestead
to be imperative and void as State Court.
Therefore when a person goes into Bankruptcy
who claims the Homestead against debts contrac
ted prior to the adoption can't be made him in
the State Court, which does not allow the exemp
lions but only in the Bankrupt Court; this rem
ders the enjoining by the District Court of pro
ceedings in the State Courts absolutely necessa-
ry. otaer wise the Bankrupts estate would be dis
tributea among his creditors by the State Court
acting uuler the State law, and he would be Who'll
ly deprived of the right to Homestead given by
the recent Bankrupt amendment.
VERITAs.