Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1878-05-30
THE HERALD,
INSOLVENCY LAWS.
Enactments OF the Various States ON the Sub
ject ofBankruptcy.
From the New York Times.

From the New York Times.
The little state OF Rhode Island
has taken time by the forelock, call
ed her legislature together, and got
bankrupt act of her own, so that
embarrassed debtors may be dis
charged from their liabilities on sur
rendering all their property, and
creditors can obtain all there is to
be applied for the satisfaction of
their obligations. Of course the as.
signment and discharge will be no
bar to the proceedings in court of
other states against the property or
person of the debtor. There are not
many of the states that enjoy the
advantage of having all their legis
iators within hailing distance of the
capitol, and few of them will call
special sessions for the purpose of
providing for bankruptcies. Where
the Legislatures are still in session,
very likely they make some amend
ments to the existing laws, in view
of the repeal of the national bank
rupt act, which will soon be COM
pleted. In most cases, however, in
solvency will doubtless be lets to the
operation of such laws as may now
be in effect or will revive on the ex
tinction of the national provisions
which have superseded them since
1867. 1t will be of interest to in
quire into the status of the laws
bearing on this subject in the several
states.
Very few of them have anything
that can properly be called bank
rupt law, even for the benefit of
their own citizens. Massachusetts
has statute providing for both vol
untary and compulsory bankruptcy,
somewhat similar in it's provisions to
the national act prior to the amend
ments of 1874. The debtor obtains
discharge on paying 80 per cent,
and complying with all the require
ments of the law, or irreseclive Of
the amounts paid, provided major,
ity of creditors 10 number and
amount of claims give their assent
| All claims within this state and all
others proved during he proceedings
are barred against future recov cry
There is no assignment law in Mass
achusetts. Vermont, with remark
able provision of coming events,
adopted a bankrupt act in 1876,
which was modelled in its general fea-
lures on the national law, and which
gives jurisdiction to the probate
courts. 1t goes little further than
the Massachusetts law, inasmuch as
it bars all claims of nonresident
creditors which might have been
proved in the proceedings. There
is also voluntary assignment law,
which, however, provides for no f.
nal discharge. Connecticut has an
old insolvent law, which has never
been repealed, and which provides
that any creditor who, on suing for
q debt exceeding 800, finds no prop
erty to attach, may apply to the pro-
bate court and have the debtors
property placed in the hands of a
trustee to be applied to the liquida-
ton of his debts. He does not get a
full discharge, however unless 70 per
cent. IS paid. 1t provides also for
voluntary assignments. Maine has
no insolvent law except for the set
Element of the estates of persons de-
ceased. 1t has however, provided
tor the voluntary assignment of a
debtors property for the benefit of
bis creditors. The latter are allow
ed three months 10 which to become
parties to the proceedings, and il
they do not choose to do so they
have no share in the benefits, but
the debtor is discharged only as to
the claims of those who are parties.
The New Hampshire assignment
law is similar to this, except that
only thirty days are allowed the
creditors in which to give their as.
sent to the assignment. In this state
here is general assignment act,
passed last year, but it provides for
only voluntary proceedings and
works no final discharge. There is
no bankrupt law, properly speaking,
here. New Jersey has an insolvent
CT intended to secure the discharge
of persons under arrest, on surren-
1ering their property To an assignee
appointed by the court but it does
not discharge property from future
liability for debts ante-datiug the
proceedings. There is also a volun-
tary assignment law, under which
all creditors share alike in case thew
exhibit their claims. IF they do not
they have no share in the dividends
from the estate, but do not lose their
fright to recover in future by suits at
aw. The Pennsylvania insolvent
laws are only for the relief of persons
arrested on execution after judgment
and in case Of voluntary assignments
the debtor is discharged only so far
as payment is made In Maryland
under voluntary assignments, which
are the only kind, the debtor is dis.
charged only from those claims for
which a release is signed by the cred /.
itor.
Most of the western states have
voluntary assignee laws, but few of
them have provided for insolvency
proceedings of any other kind. In
Illinois, for instance, the debtor
may apply to the county court and
assign all his property for the bene-
fit of his creditors. He must exhibit
an inventory of his estate and o
schedule Of indebtedness, with list
of creditors. Notice is given, by pub
LEGATION and by mail, and three
months allowed for the presentation
| of claims. Those creditors who do
not participate receive no dividend
until the others are paid in full, but
there is no final discharge of the
debtor, nor is there any provision
for compelling an assignment. The
state of the law is similar in Ohio,
Indiana, Iowa, Minnesota and Kan
sas. Michigan has an insolvency act,
but it provides only for voluntary
| roceedings. The debtor may OBJ.
tain discharge, if no fraud or pre-
!, | favaroo 10 ehn~p brk ool~- r--.,