Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1874-06-30
The Amended bankrupt Law.

|
The bill to amend the Bankrupt act,
which has passed both houses of Con-
| gress, and if it is not already, will
! doubtless receive the Executive APP
| proval, is of so much interest, that we
| give its principal features.
The intent of the first section, is to
| regulate the disposition of the bank
rupt assets so as to make them rra-
| lice the greatest amount, and for this
purpose the court is authorized to al
| low the assignee or receiver. to carry
on the bankrupt's business for peri
| cd not exceeding nine months, when
| the interests of the estate and of the
creditors viii be thereby promoted
Stringent provisions are also made by
section 4 to enforce the accountability
of the assignee, and to surround the
estate with safeguards against amy
abuse of the opportunities Of his posi-
ton. To save expense 10 the estate
where small creditors are numerous, it
is provided that notice of the proceed
ings being taken may be given by
publication instead of personal service
or mail, as now.
Section of the amenGatory act
makes an important change in the
law by enacting that in cases OF an i'll
voluntary bankruptcy the payment
of no proportion Of the baHETuDt's
debts, nor the assent Of any uf bis
creditors, shall be necessary to his dis
charge; and in cases of voluntary
bankruptcy the proportion is lowered
from fifty 10 thirty per cent, and in
stead OF a majority III number and val
ne of creditors, the assent of but one
forth in number and one-third il VaI@
ne is made necessary.
The periods during which transact
tons Intended to give preference are
made imperative 10y the present law
are changed from four and six months
to two and three. In order TO set aside
hypOthecated pledges or liens Oh 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 90 into bankruptcy
When loan is made to a bankrupt in
good faith, and security taken with
the intention of aiding him to get
through, it shall be considered as hav-
ing actual value, and the security shall
not be invalidated by proceedings in
bankruptcy.
The specification Of what shall consti-
tute acts of bankruptcy is materially
amended in the matter of suspension
Of payments, fraudulent suspension
for any length of time, and actual sus-
pension without resumption within
forty days. being enumerated as such,
But instead of a single creditor, to the
amount Of $3.50, being able to force
debtor into bankruptcy, the amends
tory act requires One-forth in lumber
and one-third in value. And the pro-
visions of this section are applied to all
cases of involuntary bankruptcy be-
gun since December ], 1878, before, as
well as after, the passage of this act;
so that cases heretofore commenced on
the petition of creditors less in num-
Der and value may, on the petition of
the debtor, be dismissed. It is also
provided that in computing the num-
Der of creditors who shall join in the
petition, those whose respective debts
do not exceed $3.50 shall not be reck- |
oned. Proceedings may be discOntin-
ned whenever the debtor pays those |
secured debts which were the ground |
of throwing him into bankruptcy, or
whenever; with the consent of the |
courts, he and majority of the credi- |
tors shall ask for discontinuance of
the proceedings.
A majority in number and three |
fOurths in value of the creditors, in |
cases now pending adjudiciated, as
we'll as those hereafter begun. may at |
a meeting called by the court, agree TO |
accept a composition offered by the |
debtor, and thus agreed upon, it shall |
be binding upon all creditors brought |
in according to the provisions of the |
act. The court. however, may refuse |
to confirm such composition, for good |
cause.
Section Is makes the important re-
duction of ODe-halfi in all existing fees. |
commissions, charges and allowances, |
except necessary disbursements, until |
hejustices of the Supreme Court shall /
make new rules and regulations TO |
as far as i'm their judg !
ment will cOnduce to the benefit of the |
to consClidate-the duties of
bankruptcy officials, reduce their
charges and avoid delays.
Section 20 provides that in addition
TO the officers now authorized to take
proof of debts against the estate of a
bankrupt, notaries public are author
lied 10 take such proof in the manner
and under the regulations provided;
such proof to be certified by the notary
and attested by his signature and Off
cial seal.
The late Edward Everett condensed
INTO n einoIa hrief nara rat,h his esti