The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-23
4 BANKRUPTCY BILL
Brlot and Simple Measure
Passed Senate Yesterday.
Yl4c- GNMEITINhG inarOCEn
TIE CONDITIONS lMFO OSEO
PREFERENCES ARE FORBIDDEN
FOUR MONTHS BEFORE.
LIMIT TO PROPERTY TRANSFERS.
The Minimum of Debt for Voluntary
Bankruptcy is 5000; For invol-
un.ary BANKRUPTCY, $500 Con
diiions as 10 the Later.

Washington, April 22.-The bankrupt
cy bill passed by the Senate to-day was
framed by Senator Nelson, of Minnesota,
and is comparatively brief and simple
compared with the bill reported from the
Judiciary Committee and known as the
Torrey bill. The Nelson bill provides
that any debtor, other than a corporation
owing two hundred dollars or more who
is unable to pay his debts, may file his
petition in the district court of the Uni
ted States for the district or division
thereof in which he resides, asking for a
discharge from his debts, and offering to
surrender all his property for the pay
ment of his debts, except such as is eX-
empt by the law of his domicile from
execution and liability for debts. The
petitioner shall attach to his petition a
schedule and list of all his property, ex-
empt and uneXempt, and schedule and
list of all his creditors and the amount
and nature of the debts due each, and
shall offer to surrender all his uneXempt
property for the payment of his debts,
and shall conclude with a prayer for a
full discharge from his debts and liabili-
ties. The petition shall be heard by the
court in not less than 80 or more than
80 days from the time it is filed. If the
court upholds the petition the estate of
the bankrupt is transferred to an "as-
signee" for settlement. Creditors can
resist the proceedings before the court
on certain enumerated grounds of fraud,
or preference to creditors, etc. Prefer
ences four months prior to filing bank
ruptcy petitions are null and void and
transfers of property within six months
are void. Provision is made for diStri-
buting the estate among creditors. After
the settlement the court gives a final
hearing and when all proceedings have
been regulated, final decree is given,
S'discharging and ac1uitting the bank
rupt from LII his debts and liabilities due
any of the creditors described in the
schedule attached to his petition, or to
any of the creditors who may at any
time subsequent thereto become a party
to the proceedings. But such discharge
shall not include any debts or obligations
which shall have been created in conse-
quence of his defalcation as a public of
ficer, or as an executor, administrator,
guardian or trustee or while acting in
'HlS OlItI uOT any
| debtor obligation to any surety of the
bank superintendent who has paid or
| may pay any such fduciary debtor or
| amy part of it, nor any debtor obliga-
ton created by the obtaining of moneys
or property under false pretense."
The provision as to involuntary bank
ruptcy is as follows: THAT
If any debtor being a bank
er, broker, merchant, trader or
manufacturer who owes five hundred dol
lars or over and who is unable to pay his
debts, shall at any time within four
months of the time of the filing of the
petition hereinafter mentioned assign,
transfer, convey, or in any manner vol
unfairly cucumber any of his property
with the actual intent and purpose on his
part to prefer or defraud any of his
creditors. he shall be deemed a bankrupt
and may be proceeded against in court
of bankruptcy as hereinafter provided.
A creditor or creditors having debts a.
gainst such a bankrupt to the amount
of five hundred dollars or more may,
within four months after the act of bank
ruptcy has been committed, file in the
court of bankruptcy in the district i'm
which the bankrupt resides, a petition,
under oath, setting forth, among other
things, the acts of bankruptcy aforesaid,
and praying for an adjudication of bank
ruptcy against the bankrupt, and the
distribution of his estate among his cred
itors.' The court then proceeds within
30 days to hear the case. The accused
may demand a jury. On the hearing
the court or jury holds whether the ac-
cused is or is not a bankrupt The other
proceedings are as in the case of volun-
tary bankruptcy. fees in both classes
of bankruptcy are provided, viz attor-
neys fees not above $100: assignee not
above 50 per day. Appeals are allowed
except when entire bankrupt estate is
under $4,000.