The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1898-11-02
THE BANKRUPT LAW.
Valuable Information as to the Work
ings of the New Law.

Maj. James F. Hart, a careful and
accurate lawyer, has furnished the
Torkville Enquirer with ti;rc,.v and imy
portant information as to the signi6-
cance and operation of the new bank
rupt law. This article Will ,.ro2c IN
teresting to the public generally, and
especially to individuals and firms who
are in debt. Here is what Maj. Hart
says:
The bankrupt law, recently enacted
by Congress, is now in full effect, and
available to all who may seek its bene-
fits. Its provisions seem to be but lit
tie understood, as the press generally
has not given much attention to it's le-
gal features.
The main purpose of the law is to
provide the way to close up the busi-
ness Of such persons as are hopelessly
insolvent, give their creditors ratable
distribution of the assets in hand, (re-
serving the State homestead exemptions
to the bankrupt } and then grant abso-
luton for the balance of the indebted
ness. When there has been no dis
honesty or fraud, the mode of obtaining
the benefit Of the act is speedy and in
expensive.
A secondary purpose Of the act is to
force into bankruptcy, and thereby
compel distribution Of the assets Of
any persons, who, being insolvent, is
misusing or fraudulently applying his
means. Insolvency, in the present act,
has new and more liberal definition
than has usually been given it, and no.
person is to be adjudged insolvent who.
has sufficient property. at far val,
uation, to pay his debts, exclusive Of
such property as he may have convey
ed away.
The effect Of the law is the feature
that will attract the widest attention.
How far it supercedes State insolvent
laws, such as assignments for benefit Of
creditors and releases by such means,
does not seem to be fully agreed upon.
But as to partnerships, an assignment
would be ascribed as an act of bank
ruptcy, and the assignors forced to
settle their Indebtedness under the
terms of the bankrupt act. for a most
obvious reason.
Under the decisions of our supreme
court, all partnership assets are given
exclusively to the partnership creditors;
and these creditors, if not fully paid
then come in ratably with the individu-
al creditors to share the individual as
sets. The bankrupt law provides, how
ever, different rule for distribution,
and gives partnership assets to partner
ship creditors, and individual assets to
individual creditors, with the right to
each class to participate in any surplus.
Individual creditors Of a partnership,
of course, would not stand by and per-
NIT distribution under the State as
signment law when they can get a
better provision under the bankrupt
law.
But aside from this, it seems to be
the better legal opinion that, as under
the Federal constitution Cart. l., Sec
10y "No State shall pass any law i'm
pairing the obligation Of contracts, but
the right to establish IAN uniform sys-
tenn of bankruptcy" Cart. L., Sec. 81 is
reserved for the United States Congress
this remedy, when enacted, must su.
percede and displsce all State iusolvent.
laws.
So long as Congress failed to exer-
else the power to adopt the uniform"
system for the whole Union, each State:
exercised the right of providing its owp
system of relief for insolvents. But
the constitutional system having been
provided, the State systems are super
cedei, This view seems to be the log
ical one, and, if correct, the enactment
of the bankrupt law has produced an
unexpected and startling influence on
State laws.
How to obtain the benefits Of the
bankrupt law can better be ascertained
by interested persons consulting their
lawyers. But, briefly stated, proceed
ings, are commenced by petition to the
United States district court; and after
this most Of the proceedings are before
local "referees" appointed by the dis
trict Judge, one or more for each coun-
ty. Trustees are appointed to take
charge of the assets and convert into
money. The fees allowed are so ex-
ceedingly small that there will be found
difficulty in securing suitable persons
to fill appointments Of referees and
trustees.
The law is full in it's directions as to-
the minor details Of the process of bank
ruptcy, and these will not interest the:
public. But altogether, it presents a
wise, liberal and humane method by
which the stifed business energy Of
many who went to the wall under the;
grinding depression Of the last ten
years, may be released and given oppor-.
tunity for new expression in the busi-.
ness world. And in this view, it is not
only blessing to the unfortunate, but:
boom to the whole country.