Connecticut western news., 1878-09-05

TIE BANKRUPT LAw.-The bankrupt law came to an end Saturday last. The --A-- >R c-.l------ts tsSurng Ine week-was
 very large, as many who were staggering along under a heavy indebtedness embraced this as the last opportunity to get release
 from their creditors. The law passed Mch.
 End 1867, (and has since been in force
 though under notifications and amend,
 ments), having two fold object. First, to
 provide means of relieving honest but un.
 fortunate debtors from their liabilities, and
 enabling them to start again in business
 and second, to secure an equal distribution
 of the debtors property among his credit.
 ors, and prevent unjust preferences. That
 the object of the law has been grossly per.
 verted, none will deny, and public senti-
 ment was strongly set against it. As the
 law is now repealed the question naturally
 arises, 'What advantage was to be obtain
 ed by means of this law over the State in
 solvency laws of the different States ?''
 There were two methods of iniating pro- ceedings in bankruptcy it could be done either by the debtor himself, or by his cred Ifors. In one case it was known as volon- tary; Tn the other, as involuntary bankrupt cy. The same may be said of the different State proceedings. A voluntary bankrupt could not be discharged unless his assets equal hssty per cent. of the claims proved against his estate. This did not mean that his creditors must receive thirty per cent. on the amount of their claims. and if the entire estate was consumed by the costs and expenses of the proceedings, the debtor was still entitled to his discharge; or in other words, if there had come to the hands of the assignee thirty per cent. of assets appli- cable to the bankruptcy proceedings this was enough, and if, by sacrifice of the goods by the assignee. thirty per cent. wss not realized this would not prevent a dis charge. In cases of involuntary bankrupt cy, however. the debtor was entitled to his discharge soithout Gny percentune of assets.
 That provisions of this character gave man in failing circumstances great advant. age over proceedings under the State law, will be seen by briefly referring to some of the statutory proceedings of this State and of Massachusetts. The Connecticut law says: 'It upon final settlement the estate shall pay seUenty per cent. (and this means either voluntary or involuntary proceedlngs) on the claims allowed, such debtor shall re- ceive certificate from the Judge of Pro- bate, which shall discharge him from all claims which have been proved against his estate; but there is nothing compulsory about the presentation of claims, and those not presented may at the expiration of two years attach any property the insolvent debtor may have, provided the statute of limitations is not bar to the claim, and if l any claimant shall find that if by waiting | two years the statute of limitations will cut him of, he may at any tune before the two years have expired bring suit and obtain judgment"
 The Massachusetts law says that dis. charge shall not be granted to debtor whose assets do not pay fifty per cent. of the claims proved against his estate, unless the assent in writing of majority in num- Der and value of his creditors who have proved their claims is filed in the case with n six months after the commencement of Thus it will be seen that the provisions of our laws and those of Massa- ;husetts are much more stringent than those # the bankrupt law. and why it is that in olYent debtors have been recently diving nto bankruptcy like turtles into frog 'ond. Il