The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1882-03-30
A MIL
To Establish Uniform system ~ Bsshs
raptoy Throughout tho Usltod states. In =
trod ucod by Mr.. Ingalls,.

To Establish n VHif0rm Nyssom ~ DARE
ruptoy Throughout tho Usltod states. In .
troducod by Mr.. Ingalls,.
lie II enacted by the senate and house OF
representatives Of the United States OF
America in congress assembled, That when
ever any person, without fraud, shall have
become involved In debts and liabilities be-
yond his means of payment, and amount
ing to five hundred dollars or upwards,
he may apply by petition in equity,
setting forth his insolvency and
the canse thereof with schedule of his
liabilities and assets, duly verified, to the
district court of the. United States for the dis
trict in vhich.he may reside, on whichjuris-
diction is hereby conferred, to surrender his
estate for the benefit of his creditors, except
so much as shall be exempt from execution
under and by the laws OF the state where
he resides, and thereupon, if good
cause appear, the court shall
adiudge the petitioner to be a bank
rupt, appoint receiver OF such estate
and cause reasonable notice, by service
mail, publication, or otherwise, to be given
to all persons interested, and shall proceed
to hear and dispose Of the cause upon its
merits as the pleadings and proofs may re,
estate among the creditors of the petitioner
according to the rules and practice Of
equity. And if it shall appear that such
debts and liabilities were incurred
without fraud, and that the
inability Of the debtor to make payment
has arisen from accident and misfortune,
and without fraud, the court shall grant
him a discharge bankrupt from al
such debts and liabilities. This act shall
also apply TO corporations.
Sec. 2. That wheney er any person resid'
ing and owing debts as aforesaid, after the
passage of this act, departs from the state
| district or territory of which he is an irhab
liant, with an intent to defraud his credi'
tors, or, being absent, remains so, with like
| intent, or conceals himselftO avoid arrest
or the service Of legal process issued or
feared, or makes fraudulent transfer OF
his property, or conceals or removes the
same to avoid process, or with intent to
defraud his creditors procures or suffers
| Judgment against him, or gives warrant
to confess Judgment or judgment note with
| like intent, or who having been arrested in
any civil action fails or neglects to give bail
or in some other mode to pro-
cure his discharge for twenty days, or
fails to dissolve al attachment laid upon his
nroperty in civil action for like period,
or fails for sixty days to satisfy final judg.
ment or decree rendered against him fol-
the payment of money, unless super
sedeas or stay of execution has been effected
in respect thereto, or who, being trader,
has suspended and not resumed payment
of his commercial paper, open, accounts
made, passed, or contracted in the course
of his business, for period of thirty
days after the same were payable, or
who, being insolvent, makes preference
TO any creditor, or makes an assignment
for the benefit of existing creditors, with or
without preference, any creditor or credit
ors NAV file such petition in behalf of all
persons interested, and thereupon the like
proceedings shall be had as in the case of a
petition by the debtor.
Insolvency in this act shall be deemed to
exist only when the debtors Liabilities ex-
coed in amount the value of his property
liable to execution, and the available debts
due him.
Sec. 3. That the court shall have
mower to grant extensions of time for pay
ment, and to reduce the amount OF indebt-
edness pro rata, for the purpose OF allowing
the debtor to proceed with business, if it
shall, seem best to do. And my agreement
between the debtor and the majority in
amount and number Of his creditors may be
carried into effect fappreved by the court.
Sec. 4. That the court may, at
any time during the proceedings,
order that all or any other, pro-
ceedines be stayed or dismissed, and may
require all or any claims to be presented to
II for determination, or may allow any
other proceeding to be prosecuted to final
Judgment, and such judgment to be filed
In the bankruptcy. Any claim not due
may be matured by rebate under an n or Or
preiudicedg by having taken security in
good faith, and without notice of impend-
ing bankruptcy but securities otherwise
taken may be set aside.
Sec. 5. That any interlocutory matter in
the course OF the proceedings may be heard
before any standing or special master in
chancery, and under standing or special
order of reference. and at any place .dcsig-
mated in such order; but all the decisions of
such masters shall be subject to the sum-
mary and informal supervision and control
of the court. The circuit judge and
the associate Justice of the supreme
count assigned to the circuit shall
have and exercise q like super
vision and control over all the proceedings OF
the district court in bankruptcy; and at the
request of any person aggrieved by any de-
cision of the district court, or the judge
thereof, he shall forthwith certify the ques-
tions involved in such decision to the cir
cult Judge for summary review and rede-
termination; and any decision of the circuit
nudge may he in like manner reviewed by
said Justice of the supreme court; or the
marty aggreived may seek relief by appeal
as in other cases.
Sec. G. That any conveyance, transfer
or payment made and received in view OF
bankruptcy may be set aside if found 10 be
contrary TO the Just rights OF other credi'
tors. But money obtained and used In
good faith, though unsuccessfully, to avert
an i'm pending bankruptcy, or to save O
threatened sacrifice Of property, or for sick
ness or other like necessity, may be
preferred in payment or in security by the
court.
creditor has willfully ana oppressively
sought to bring about the bankruptcy the
debtor, or to obtain any fraudulent adyant
age over other creditors, the court may deny
such wrong-doer any participation in the
estate, OF only partial benefit OF his claim
as NAV seem Just The discharge of the
bankrupt shall not operate against any liza
bility for fraud, trespass, or other willful
tort but the validity of any discharge in
bankruptcy shall not be contested after the
expiration of two years from ITS date.
Sec 8. That the district court shall be
considered as always open for the reception
and consideration Of the business under
this act, and, at their regular terms, the
bankruptcy business shall have precedence
over all other kinds.
Sec. 0. That It shall be the duty of the
supreme court TO make such additional
ruler In equity, If any, as may be required
10 carry this act into full effect, and 10 fix
all fees aud costs for services in bankruptcy
under this act.
BILL
To Authorize the Secretary Of the Treasury