The herald., 1894-12-29
to be vacated and dissolved in such in

so tEat an assignee may defend - we'll
as prosecute any actions which were
Drought prior to insolvency proceedings.
The present law allows the assignee to
continue actions brought by the debtor.
but gives him no authority to defend ac-
tions pending against the debtor. The
old bankrupt act gave equal authority in
each instance. Great damage and injury
to the estate might result from the exc
listing defect.
Amend section 4S OF the insolvent act
to the effect that an insolvent must ap-
ply for discharge from his debts within
one year from the time he was sdjudi-
Gated insolvent. There 10 no limit at
present.
Amend section 40 OF the insolvsnt act
TO the effect that no discharge shall be
granted where the net reooveries COM
ing into the hands OF tho assignee shall
be less than 40 per cent OF the unsecured
indebtedness. unless one-half OF the
creditors, in number and amount, file
their written assent to such discharge.
Also amend the same section, debar.
ring discharge where either volun-
tary or involuntary petition has been
against q debtor, and no application for
ever been made.
The first amendment 10 self explana-
tory.
1t 10 also proposed to give the debtor,
II discharged, 5 per cent OF the net sum
coming into the possession of the as
aignee (not to exceed $1,000 in any one
instance), creditors to receive the bal
ance subject to a further reduction for
assignee's commissions and attorneys'
ices. The other amendment is neosss
sary because some courts grant . dis-
charge to debtor, although an involun-
tafy petition has been fled in time and
on the ground which would prevent
discharge, the debtor having waived
more than month after his fraudulent
preference OF transfer, and then filed
his own petition.
Amend section 55 OF the insolvent act
so that judgments obtained by confess
siona will be prima faoie void, and that
all assignments, transfers and incum.
brances mentioned in this section shall
be considered to have been given at the
time the instrument conveying or affect.
ing suCh realty was recorded in the
| county recorders Office in the county
where the property is situated. Under
the present law judgments obtained by
confession cannot be set aside, and as
deeds and mortgages are good between
the parties without being recorded, all
one has to do to circumvent this section
is to withhold recordation for month
after the deed or mortgage has been
| executed and delivered. This also cup
plements the proposed amendments to
sections 1107, 1918, 1914 @. @.
Amend section 81 by striking out the
words, upon which an order OF adjudi-
cation in insolvency may be made by
the court"
Under the existing law and the de-
oision in La Point vs. Boulware, 81 Pac.
Pop. 927, IL petition is defective in the
slightest degree il cannot bs amended
after the expiration OF q month from q
fraudulent transfer or conveyance 80 az
to permit an assignee thereafter elected
to challenge such transfer or convey
auce. As the debtor can always delay
matters without difficulty for a month
it results that if petition in insolvency,
| through any mistake or inadvsrtance
has any imperfection, creditors are
wholly without remedy. By omitting
| the above language in quotations the
section will conform to the general law
regarding the commencement OF actions
by fling complaints. Bee section 405,
G. @. P.
Amend section 81 Of the insolvent act
80 that on an appeal from an order
granting or refusing an adjudication Of
insolvency. no stay of proceedings shall
be had. unless the party appealing gives
. bond in double the value OF the prop.
erty involved, that he will be RESPONSE.
bic for ell damages which may result to
the other side on account of the appeal
and stay Of proceedings.
AT present q mere nominal bond of
500 for costs will stay oil proceedings
and leave the property in the hands OF
the insolvent. or If creditors have At.
tached it, in the custody OF the sheriff.
II the property is under attachment it
can neither bs sold under the attach
ment or insolvency proceedings. but
must remain with the sheriff for q
year or two while the appeal is pending
The code OF civil procedure should
also be amended go that ii q debtor abb
seconds or has been guilty Of fraudulent
practices. unmatured accounts may be
Immediately sued upon.
1t would also he of great value to per-
NIT unmatured accounts or demands
owing to debtors to be subject to gar.
hinhsAOhts At RACoOut yOu ChnuOt cI~
| feet legal garnisb mont unless the de-.
mand owing your debtor is due or over.
due.
To evade garnishmsnt altogether your
debtor has only to procure tho consent
Of his debtor. pay the demand or claim
| day or two in advance of ite maturity.
Many of the states, and we believe
New York is among the number, allow
hook cc0u n ta IN ha oaiz cd =, m dav a tto oh
ment or garnishment by seizure of the
books themselves, and a notice to each
debtor whose name appears therein
from the sheriff, by mail, that the
amount due or owing, etc., is attached
| or garniehed. In this state the sheriff
must incur mileage charges by person.
ally serving notice OF garnishment on
each debtor of the defendant.
Section 1850 OF the civil code to be
/ amended so az to reduce the amount oi
homestead which may be selected and
claimed by the head Of Q family from
5000 to $1,000.
Section l24l of the civil code to be
be amended 80 as to m AXE the home
stead subject to execution in satisfaction
of judgments obtained Oh debts created
prior to the recordation OF the dsclara-
| tion OF homestead.
Section 337 of the code of civil pro.
cedure to be amended go as to extend
the time within which motion may be
brought upon a written instrument ex-
ecuted in this state to five years from
the date OF the last pay ment.
And section $3.50 to be amended 30 at
| to extend the time within which an &C.
tion may be brought upon accounts tc