The western sentinel. [volume] (Winston-Salem, N.C.) 1887-1926, 1898-07-14
THE BANKRUPT Law.

The bill providing for bankruptcy
was signed by the President and
became law on the Sd instant.
Two kinds of bankruptcy are prof.
vided for in the bill-voluntary and
Involuntary That is to say, per-
son may, by due process, declare
himself bankrupt, or, under certain
conditions, he may be forced into
bankruptcy by his creditors.
The best abstract of the new law
we have seen was furnished the Balti-
more Sun by State Senator PutAel
and from this abstract we compile |
the following: <9E5Y ~
An important departure has been
made from the old rule fixing the
condition, or status, of insolvency.
Insolvency under the new law exists
only when the assets of a person cat
a fair valuation" are less than his
liabilities Under the old law it was
the inability to pay debts as they
matured, regardless of the value of
, the individuals assets-it was often
the inability to realize on assets.
The exemption laws of the several
States are recognized, and the power
of the States to alter or increase
exemptions has not been disturbed.
The provisions of the act go into
effect at once, but voluntary petit
| tious cannot be filed within one
month, and involuntary petitions
| within four months after the passage
of the act. All the prohibitions con-
| tanned in the law are, therefore, now
effective, and acts of bankruptcy
may now be committed, which can be
attacked through the courts within
four months.
1t is made an act of bankruptcy to
execute deed of trust for the benefit
of creditors; to convey property with
the intent to hinder, delay or defraud
creditors; to give any creditor a
preference or permit a creditor to
obtain preference through legal
proceedings or otherwise, or to
admit insolvency in writing, and the
willingness to be a9judged a bank
rupt. In order, however, that any of
these acts should constitute acts of
bankruptcy the person must be in.
solvent at the time the petition
| against him is filed.
Another material change in the
law requires at least three creditors
whose claims aggregate $500 to
unite in the petition, unless the
whole number OF creditors ia less
than twelve, In which event one
creditor whose claim amounts to
$500 can file a petition. In order for
a person to be sui ject to the law and
liable to be proceeded against in the
bankrupt court his liabilities must
amount to $1,000
i Any person, however, can file a
voluntary petition for the purpose of
taking the benefit of the law, what
4 ever his liabilities may be. Corpora
tions cannot file a voluntary petit
ton. tf
After bankrupt has been examined
in court and fled a schedule of his
property he may offer terms of COM
position to his creditors, and if d
majority in number and amount
accept the terms of composition, the
court may confirm the composition
and dismiss the case. The wages due
| to workmen, clerks or servants,
earned within three months before
the commencement of proceedings,
and not exceeding $500 to each
claimant, are preferred.
Bankrupts are liable to imprison-
ment for concealing property, max
ing false accounts in relation to the
bankruptcy proceedings, or present
ing false claims for proof against the
estate. A bankrupt who has COM
mitted any of these acts or who has
destroyed, concealed, or failed to
keep books of account with fraudu-
lent intent to conceal his true finan.
cial condition, will not receive his
discharge in bankruptcy, and even
after discharge is granted it will be
revoked if it is made to appear that
it was obtained through fraud. The
creditors elect the trustee.