The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1898-11-29
BANKRUPTCY RULES
ARE ANNOUNCED
Viii GO Into Effect on January
2, 1899.
ARE PRECEDED BY AN ORDER
Prescribing Proceedings in Bankruptcy
Under Previous Law.
A COMPLETE SUMMARY OF RULES
Clerks of the Court Are Required to
Keep Docket for Entering Gases
in Their Order Filing
e. of Petitions.
A COMPLETE SUMMARY OF RULES

otdleS supreme court lOudy, through JUS
tice Gray announced the new bankruptcy
rules which it was authorized to frame and
promulgate under the national bankruptcy
acs of July l. 1898. The rules have been
awaited in all bankruptcy cases.
Justice Gray announced that the new
rules would take effect on Monday, jan
uary g. 1899. and that all proceedings here
tofore taken substantially in conformity to
the act and to the regulations of 1857 as far
as practicable would be upheld. The
blank forms to accompany the rules.
while promulgated at the time, he said,
would not be ready for distribution for
some time owing to proof. revision, etc.
The rules are preceded by an order pre-
scrbing the proceedings in bankruptcy I'M
der. the law previous to the day on which
the rules go into effect. This order Is to
the effect that where the proceedings are
''it substantial conformity either with the
provisions of these general orders, or else
with The general orders established by this
court under the bankrupt act of 1867 and
with any. general rules or special orders of
the court in bankruptcy, they shall stand
good, subject, however, to such further reg
uIatioh BIZ rule or order of those courts as
may be necessary or proper to carry into
force and effect the bankrupt act of 1898
and the general orders of this court"
The first rule requires the clerk of the
court to keep docket for entering cases
in their order with a memorandum of all
proceedings except those entered by the
referee
Rules 2, 8 and relate successfully to
the filing of papers, to processes, to the
conduct of proceedings and to the framing
of petitions. The clerk is required to in
6orse on each paper filed the time of its
recejpf. All processes are to issue under
seal Oh the court.
Has Individual Interest
Under the head of Conduct of Proceed
ings." rule 4, it Is provided thatN proceed
ings may be conducted by the bankrupt in
person in his. own behalf or by petition
ngs or opposins creditor, but creditor Will
only be allowed to manage before the court
his individual interest Every party may
appear and conduct the proceedings by at
torney, who shall be an attorney or coun-
Sellor authorized to practice In the CIRCUIT
or district court.
."Notice and orders not required to be
served on the party personally may De
served upon his attorney"
Rule 6, relating to petitions in different
shall be filed against the same individual in
different districts, the first hearing shall be
had In the district in which the debtor has
his domicile and the petition may be amend
ed by inserting an allegation of an act of
bankruptcy committed at an earlier date
than first alleged. If such earlier act is
charged in either of the other petitions and
in case of two or more petitions against the
same partnership in different courts, each
having Jurisdiction over the case, the petit
non first filed shall be first heard and may
be amended by the insertion of an allega-
ton of an earlier act of bankruptcy than
that first IL such earlier act is charged in
either of the other petitions, and in either
case the proceedings upon the other petit
ton may be stayed until an adjudication is
made upon the petition first heard.
.'And the court which makes the first ad-
judication of bankruptcy shall retain juris-
diction oyer all proceedings therein until
closed"
In the matter of priority and in cases
where two more petitions are filed by
creditors against common debtor, alleging
separate acts of bankruptcy different
days, it is provided by rule that prefer
enee shall be given to the petition alleging
the earliest act of bankruptcy.
Prayer of Petition
Rule provides that any member of
partnership who refuses to join in petit
ton to have the partnership declared
bankrupt shall be entitled to resist the
prayer of tne petition in the same manner
as if the petition had been filed by a cred
itor of the partnership and to make all de-
lenses which any debtor proceeded against
is entitled to make by the provisions of the
act, --
Rule 9. In all cases of involuntary bank
ruptcy in which the bankrupt is absent or
cannot be found it is made the duty of the
petitionng creditor to file within five days
a schedule giving the names and places of
residence of all the creditors of the bank
rupt, according to his best information.
Rule 10 provides for the indemnity of off,
GERS of the court for expenses prior to the
performance of duties.
Rule II allows amendments to petitions
and schedules.
The duties of referees are prescribed by
the twelfth rule.
Rule 10 allows either the judge or the
referee to pass upon a trustee appointed
judge only.
Rule IA forbids the appointment of trus-
tees by the courts.
Rule Is renders it allowable to dispense
with trustees in cases where there are no
assets.
Rule 16 provides for the immediate noti-
fication to the referee of his acceptance.
The duties of trustees are outlined by
rule II. One of these requires him to pre-
pare complete inventory of all the bank
rupt's property coming into his. possession.
He is to report to the court under this pro-
ceeding within twenty days, giving the es-
timated value of each article. To this
schedule creditors are allowed to take ex-
ceptions within twenty days.
The regulations for the sale of property
made by rule Is provide that all sales shall
be made by public auction unless other
wise ordered by the court. Upon applica-.
ton to the court and for good cause shown
the trustee may be authorized to sell any
specified portion of the bankrupts estate
at private sale.
Proof of Debts
Rule IL relates to the proof of debts. 1t
contains provisions which require that no.
tices of proceedings shall be mailed to all
creditors requiring them that the claims of
persons contingently liable for the bankrupt
may be improved in the name Of the credi-