Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1874-07-09
THE AMENDED BANKRUPT LAW.

THE AMENDED BANKRUPT LAW.
The following summary embraces all the
important changes in the bankrupt law as
amended by the last Congress:
The intent of the first section is to regulate
the disposition of the Bankrupt's assets so as
to make them realize the greatest amount,
and for this purpose the court is authorized
to allow the assignee or receiver to carry on
the bankrupts business for period not ex-
ceeding nine months, when the interests of the
estate and of the creditors will be thereby
promoted. Stringent provisions are also
made by section to enforce the accountable
ity of the assignee, and to surround the es-
tate with safeguards against any abuse OF the
opportunities of his position. To save ex-
pense to the estate where small creditors are
numerous, it is provided that notice of pro-
ceedings being taken may be given by publl-
cation instead Of personal service, or mail, as
now.
Section of the smendatory act makes an
important change in the law by enacting that
in cases of involuntary bankruptcy the pay
ment of no proportion ofthe bankrupt's debts,
nor the assent of any of his creditors, shall be
necessary to his discharge; and in cases of
voluntary bankruptcy the proportion is low.
cred from fifty to thirty per cent, and instead
of majority in number and value of credl-
tors, the assent of but one-fourth in number
and one-third in value is made necessary.
The periods during which transactions in
tended to give preference are made inopera-
tive by the present law are changed from four
and six to two and three months. In order
to set aside hypothecated pledges or liens on
the bankrupt's estate, it must appear that the
party dealing with the bankrupt knew that
he intended to perpetrate fraud upon the
Bankrupt law, and that he intended to 60 in
to bankruptcy. When loan is made to a
bankrupt in good faith, and security taken
with the intention of aiding him to pull
through, it shall be considered as having &C.
tual value, and the security shall not be in.
validated by proceedings in bankruptcy.
The specification what shall constitute acts
of bankruptcy is materially amended in the
matter of suspension of payments, fraudu-
lent suspension for any length Of time, and &C.
tual suspension without resumption within
forty days, being enumerated as such. But in.
stead of single creditor, to the amount of
$3.50, being able to force debtor into bank
ruptcy, theamendatory act requires one-fourth
in number and one.third in value. And the
provisions of this section are applied to all
cases of involuntary bankruptcy begun since
December 1, 1878, before, as we'll as after,
the passage of this act; so that cases heretofore
commenced on the petition Of creditors less
in number and value may, on the petition of
the debtor, be dismissed. 1t is also provided
that in computing the number of creditors
who shall join in the petition, those whose
respective debts do not exceed $3.50 shall not
be reckoned. Proceedings may be discon-
tinued whenever the debtor pays those second
debts which were the ground of throwing him
into bankruptcy, or whenever, with the con-
sent of the courts, he and majority of the
creditors shall ask for discontinuance Of the
proceedings.
A majority in number and three. fourths
in value Of the creditors, in cases now pend
ing or adjudicated as we'll as those hereafter
begun, may, at a meeting called by the court,
agree to accept composition offered by the
debtor, and thus agreed upon it shall be bind.
ing upon the creditors brought in according
to the provisions of the act. The court, how
ever, may refuse to confirm such composition,
for good cause.
Section Is makes the important reduction
of one.half in all existing fees, commissions
charges and allowances, except necessary dis
bursements, until the Justices of the Supreme
Court shall make new rules to simplify-and
in so far as in their judgment will conduce to
the benefit of creditors, to consolidate-the
duties of bankruptcy officials, reduce their
charges and avoid delays.
Provision is also made for annual reports
by district marshals, and notaries public are
authorized to take such proof of debts against
the estate Of bankrupt.