Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-01-28
THE BANKRUPT LAW.
Some Pertinent Reasons why its Re-
peal Should be Opposed.
Suggestion that Action Should be TakeI
Against its Repeal-Members Of
Congress, Take Notice.

From the Nashville Banner
/ The business interests of the country.
and especially of the South, which is
making heroic efforts to recover from
the misfortunes of a protracted war, re-
quire that the wholesome national bank
rupt law remain in force. The proposed
repeal Of the law by the present Con-
greSs excites apprehension and alarm,
and means should be adopted at once,
in every portion of this State, by petit
ton and otherwise, to express in the
most emphatic manner the wishes and
! interests Of the people upon this subject
| Business men of Louisville and other
Southern cities are circulating petitions
to Congress opposing the repeal of the
| law, and asking perfection of the sys-
/ TEN instead Of repeal. Among other
/ things they ask an amendment Of sec
| ton thiTty-five, constituting il as a SINH
| lar section of the English bankrupt act
is construed, 4. g, providing that no
sale, transfer, etc, made in the usual
/ course of business, and without fraud or
collusion, shall be void" etc. Would it
not be expedient for the business men of
Nashville, and every other town and
| city in Tennessee, to get up, without de-
| lay, similar petitions? And might it
not be well for our Legislature TO ask
our members in Congress TO oppose the
rep al of the law?
We direct the attention of the people
to some of the provisions Of the bank
rupt Law now in force, in order that the
trading community may be informed on
branch Of the law which often inter
feres with and thwarts the designs of
ill-meaniDg men, and which, by its
thorough efficiency, frequently stops the
mischievous designs OF sharpers. All
should understand the law, especially in
respect to two points:
First-That by no proceedings can the
honest but unfortunate dealer so well
protect himself from the clutches of
merciless creditors as in a bankrupt
court.
Second-That no other court grants,
thorough and searching relief for the
creditor against fraud and corruption on
the part Of debtors.
The bankrupt act declares that any
person residing within the jurisdiction of
the United States, and owing debts to
the amount of more than three hundred
dollars, may apply for the benefits of
its provisions. The word "persOn - in
cludes fen1es cOUert, partnerships and
corporations. As soon as petition in
bankruptcy is filed, the petitioner is un-
der the protection of the Bankrupt
Court. The filing of a petition operates
as an injunction against all actions at
law or in equity against the petitioner or
his property. The adjudication of the
petitioner as bankrupt brings his en-
tire property, be the same much or little,
as well as all bis creditors, under the
al af ho faA Efor
Court. Though q debtor, as we have
seen, who owes debts amounting te over
three hundred dollars, may file his
petition in bankruptcy, he cannot
get a discharge from all of his
debts under all circumstances. And |
there are several grounds which |
will prevent him from obtaining a dis |
charge, prominent among which are
fraud, concealnent of property, etc. |
There is another provision in the act, as |
follows: "No discharge shall be granted |
to debtor for debts created since the 1
first Of January, 1869, whose assets shall |
not be equal to fifty per centum of the
claims proved against his estate, upon
which he shall be liable as 8 principal /
debtor, unless the assent in writing of a |
majority IN number and value Of his
creditors to whom he shall have become
liable as principal debtor, and who shall
have proved their claims, be filed in the
case at or before the time of the hearing
of the application for discharge 1t
follows, therefore, that q debtor may be
discharged of his entire Indebtedness be-
fore the first of January, 1859, who has
not assets sufficient TO pay fifty per
cent Nor is it necessary that there
should be sufficient assets TO pay fifty
per cent. of security debts. And, final
iy, a majority in number and value Of
creditors, who prove their claims, may
the bankrupt Of his entire in
without paying fifty per
cent. There are other wholesome pro-
visions in the law, which, to enumerate,
is not the design of this article, but
which, in due course, we will lay before
our readers, so that they may fully un-
derstand the act, the repeal of which is
now threatened.
Should our present wholesome bank
rupt law be abolished, Just as the people
are becoming familiar with the pro-
visions, the insolvency laws of the diff
ferent States would Immediately revive,
and We should then have crude systems
of bankruptey-pOssibly as many in
as there are States of the Union.
How much better that Congress should
sustain uniform system OF bankrupt
cy-a system which may be improved
by such amendment, from time to time,
as experience shall dictate--a system
which shall become a permanent fea-
ture OF American Jurisprudence.
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