The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1880-01-07
Interesting to Rankrupts

The following decision made recently in
the United States district court by Judge
Gresham will prove of interest to bankrupts:
In the District Court OF the United States, for
the District OF Indiana, In the matter OF Con :
rad Seaman, bankrupt:
Gresham, lin this case tn usual petition
aud affiSavtt for discharge were filed and The
9th day OF April, 1919, was appointed for the
creditors TO appear and show cause why the
on Inc day thus appointed the assets of the
bankrupt did not equal 80 per centum OF the
proven debis. No assent OF any portion of the
creditors 10 his discharge was then filed, and
the court su- pended lis action upon The peti =
ton In order to afford the bankrupt further
opportunity to procure and file the assent
aforesaid.
Subs. quently the bankrupt asks leave 10
file proofs OF debt by other creditors with their
assent 10 his discharge, making the assent of
one fourth III humber and One-.hird in value
OF all creditors who have proved their debts,
and IL is for the court to determine whether
this leave shall be granted.
Section SIP of the bankrupt law requires
that the assent to discharge shall be FLED at or
before the hearing of the petition therefor,
which Is the return day of the show cause or
der, unless further proceedings are necessary
and the general orders OF the supreme court
NO. "a provide that apy creditor who wishes
10 oppose the petition for discharge must zen C.
ter his appearance in opposition thereto on the
7 day when the creditors are required to show
cause,
The law does not explicitly designate the
precise time when the status of the estate
in bankruptcy shall be considered In
determining whether the bankrupt is entitled
TO a discharge; il does not say Just wnen the
assets shall equal q certain proportion of the
debts, or Just when the assent of certain pro-
portion of the creditors shall entitle him TO a
discharge.
But it is plain that under the rule no oppos
ton TO the discharge can be made unless an
appearance for the purpose OF making IL is
entered on the return day, and no appearance
can be entered unless IL is by creditor who
has proved his debt on or before that day. II
this he N WOuln ba unfalr hermit the
subsequent appearance and proof by creditors
for the purpose of aiding the bankrupt in get
ting discharge, when the strict language OF
the rule denies the right OF subsequent APP
pearance and proof by creditors for the pur-
pose of resisting 1t,
IL, on the return day, the record shows the
bankrupt is not entitled to a discharge, by rea-
son OF a deficiency of assets or the failure or
refusal of enough creditors to assent thereto,
the creditors are not apt to enter their appear
ance in opposition to the petition, for IL would
be unnecessary 10 oppose what is denied by
their consent, And If the status of the case
as II exists on that day may be afterward
modified by the admission OF other creditors
who favor the discharge, II would seem proper
that all the creditors should be again notified
and have another opportunity to show cause,
and so ad infinitum.
The proceeding of the bankrupt for dis
charge is one instituted by himself, the credit
ors who have proved their debts are made
parues, ana the pankrupts right 10 the rellei
asked by him. IL cases where there is no APP
pearance in opposition thereto, depends upon
| the showing that he is able To make on the
day that the creditors are required TO respond
! to his petition.
He can select his own time. under the limi.
tatiOns imposed by the statute, for filing his
petition, aud If he is not abe on the return
! day of the order that Is zde thereon, aud in
default OF any opposition thereto, 10 show
that be is entitled to the relief that he asks,
/ he ought not to be permitted To come in after
ward and obtain IL without further notice,
and upon an entirely different showing. Ii "A
/ discharge is subsequently granted upon the
I nj of creditors IL Nts nnOn the assent
/ of such creditors as have proven their debts
on or before the return day. 1t seems to be
| the meaning of the law and rules that an I'M
/ opposed petition for discharge Is to be sub
mitted upon the state of case that exists on the
return day, and the leave to file the assent OF
creditors who have proved their debts since
that time Is accordingly refused.
McLatn 4 Baken, Solicitors for the Bank
runt.