Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1881-01-05
Laws of Vermont.


and provide Tor the equal distribution oil the
effects Of insolvcnt debtors.
II is hereby enacted by the General Assembly Of
Ia, State Of Vermont
SFtIIoN !. The register OF a court Of insolvency
may administer oaths required in the course Of
proceedings before the court, except the oath to
be taken by the debtor at the second meeting Of
the creditors and In the absence OF Judge or a
vacancy IN that office he may call and hold credit
tors meetings dinurn a court or meeting.
SKe. .. In Ease OF the legal disability OF Judge
to act in case, or in case the Judge dies or be-
comes incapacitated for executing the duties Of his
office, removes out Of the insolvency district, or
resigns the register shall have the powers and per-
form the duties OF the Judge until such ncapacity
is removed or until another Judge is appointed.
SIC J. Section eight OF number one OF the acts
Of 1870 is hereby repealed
Src T. Section fifteen Of said act is hereby
amended 50 as to read as follows
An inhabitant OF this State owing debts exceed
ing the amount Of three hundred dollars. contracted
while such inhabitant. which he is unable to pay,
may apply by petition verified BY oath 10 the Judge
lot the. Insolvency district in which he resides, set
ting forth that he is such inhabitant and is owing
debts contracted while such inhabant TO an amount
exceeding three hundred dollars which he isunable
to pay in full, and that he Is willing to assign his
estate and effects, except such as exempt from
attachment, ior The benefit of his creditors, and
prayidg that such proceedings may be had in the
premises as are provided In this act "
SEC. s. Section seventeen Of said act Is hereby
amended 50 as to read as follows;
Upon the filing Of such petition and the
filing of the schedules OF creditors and assets,
the judge shall forthwith order meeting of
the creditors Of such petitioner and fix the
time and place for holding the same. and cause the
register to forward by mail prepaid, to each cred
tor named in the schedule. notice stating the
date and place Of filing the petition, and that a
meeting OF the creditors will be held at a court of
insolvency, to be held at time and place named in
the notice, not less than ten nor more than sixty
days after the date OF the notice, to prove their
debts and choose one or more assignees OF the
estate. The Judge shall also cause the register
forthwith to give notice by advertisement in one
more newspaper OF general circulation in such dis
trict OF the filing of the petition of the time and
al he md hat tha
ment OF any debts and the delivery Of any properly
belonging to said debtor. to him or for his use and
the transfer Of any property by him are forbidden
sfc s. No creditor whose debt is provable
shall, unless the amount due such creditor is in dis
pute, be allowed after the filing of the petition
prosecute to final judgment suit at law OF in
equity therefor against the insnlvent debtor until
The question OF such debtors discharge has been
determined and any such suit shall, on the appli-
cation Of the debtor, unless he unreasonaby delays
cndeavoring to obtain discharge, be stayed to
await the determination of the court of insolvency
on the question Of discharge II the amount due
the creditor is in dispute the suit, by leave of the
court Of insolvency, may proceed to judgment for
the purpose OF ascertaining the amount due, which
amount may be proved in insolvency but cxccu-
ton shall be stayed
SIC. :. Section twenty-iour OF said act is hereby
amended so to read As follows
Debts due and payable from the debtor At the
time Of the filing Of the petition may be proved and
allowed against his estate at any meeting of the
creditors, and debts existing but not payable until
future day, may be proved and allowed II
presently payable with a discount of interest
where no interest Is payable by the contract.
Claims against the debtor for OF ou account Of
goods chatlels or other property wrongfully taken,
withheld or converted by him may be proved and
allowed as debts TO the value Of such property,
with interest
II the debtor is bound as indorser, drawer.
surety, bail OF guarantor upon bill, bond, note,
or other contract or for a debt OF another person
ani hi7 liability does not become absolute until
after the filing Of the petition, the creditor may
prove thc same after The liability, becomes fixed
and before final dividend is declared
In ca>cs NJ contingent debt and contingent LA
bility contracted by the debtor and not herein
otherwise provided for, the creditor may make
claim therefor and his claim may he allowed with
the right To share in the dividends il the contin-
gency happens before the order for the final divi-
dend or he may at any time apply TO the court to
ascertaned and liquiiated which shall be done in
such manner the court orders, under the provis-
ions of this chapter and he shall be allowed to
prove as a debt the amount ascertained.
person liable as bail, surety, guarantor or
otherwise for the debtor who has paid the debt or
any part thereof in discharge Of the whole may
prove such debt for the amount paid, although
such payments were made after the proceedings in
insolvency were commenced and person so liable
for the debtor and who has not paid the whole OF
said debt but is liable for the same part thereof
may, " the creditor fails or omits to prove such
debt prove the same IN The name OF the creditor or
otherwise as is provided by the rules
When the debtor is liable to pay rent other
debt falling due at stated periods, the creditor may
prove for a proporionate part thereof up to the
"
increased from day 10 day, and not At stated
periods,
II the debtor is liable for unlquidated damages
arising out Of a contract or promise on account
OF any goods or chatteis wrongiully taken, con-
verted withheld the Judge may assess such
damages or cause them to be assessed as herein
after provided and the sum so assessed may be
proved against the estate.
Upon debts subject to the payment Of interest
interest shall be computed TO the date of the filing
of the petition
No debt other than those above specified shall be
proved or allowed against the estate
SEC. 8. Section twenty-six Of said act is hereby
amended so as to read as follows
When creditor has mortgage or pledge OF real
personal estate Of the debtor lien thereon for
securing the payment OF a debt claimed by him, the
property held security shall il the assignee or
creditor require it, be sold under the order OF court
and the net proceeds applied towards the payment OF
such creditors debts so secured, and he shall be adj
mitted as a creditor for the residue II any. The
sale shall be made in such manner as the judge shall
and the creditor and the assignee respectively
shall execute the deeds and papers necessary and
proper Tor cfrcting the conveyance. II the credi-
Tor So elects he may release and deliver up TO the
assignee the premises estate held security and
be admitted as creditor for the whole Of his debt
SIC. Q Section thirty-two OF said act is hereby
amended 80 ~ to read as follows,
"A person claiming to he creditor whose
claim Is disallowed in whole or in part to
the amount of twenty dollars, or an assignee
any other creditor dissatisfied with the allow
auce OF claim TO the amount OF twenty dol
lars or more, may appeal from the decision making
such allowance to the county court If notice thereof
given 10 the register, 10 he entered with the
record Of the proceedings and also to the assignee
and creditor, within ten days after the decision
appealed from. The appeal shall be entered at the
term OF the county court first held within the county
after the expiration Of twelve days from the time OF
claiming such appeal But II the appellant in writ
ing valves his appeal before the entry thereof, OF
does not enter il, proceedings may be had In the
court OF insolvency as 1t no appeal had been taken
Security for costs shall be given by the party
appealing as in cases OF appeal from the probate
court.
Ssr 10 An assignr,cnt under order of a eour,
OF insolvency shall vest in the assignee all the pro-
perry of the debtor, real and personal, which he
could have lawfully sold, assigned or conveyed, or
which might have been taken on execution upon
a Judgment against him at the time of the hling OF
the petition, and all debts due the debtor or any
person for his use, and the liens and securities
therefor and his rights of action for usurious inter
est or for goods or estate real or personal, and
rights OF redeeming the same And the assign
ment shall by operation Of law relate back to the
date Of the filing OF the petition and shall dissolve
attachments upon mesne or trustee process, or writ
of sequcstration upon the property Of the debtor
made within sixty days next preceding the filing oil
the petition and all liens OF execution when the
property levied upon has not actually been sold
before the commencement of the proceedings Ia
insolvency and when the property levied upon wa,
not actually attached upon mesne process at leas
sixty DAYS before the commencement of the pro
ceedings In insolvency, and the property estat,
so attached or levied upon shall come TO the hand
Of the assignee.
Sac. ~. The assignee may, under order OF court
redeem mortgages, conditional contracts, pledges
liens upon the goods or estate Of the debtor, sci
the same subject to such mortgage or ncumbrance
The costs in all suits made before the commence
ment Of the proceedings In insolvency where attach
ments and ieyes are dissolved under this act, maj