The comet. (Johnson City, Tenn.) 1884-1916, 1898-07-14
Bankruptcy Bill.

passed Congress brings to an end, for
a time, at least, long-continued agi-
tation ever legislation which was ad-
mittedly needed, but the exact features
of which have been made matters of
obstinate contention. The bill finally
adopted is the result of a compromise
reached between the advocates on the
one hand who viewed the question
from the standpoint of the debtors, and
! those who were disposed to chiefly con-
slider the creditors side. The house
bill was modification Of the Torrey
measure, which provided for voluntary
and involuntary bankruptcy, while the
Senate or Nelson, bill was almost ex-
clusively in respect to voluntary bank
ruptcy. Some of the principal feat
ures of the compromise bill are given
below:
The law provides that "any person
who owes debts, except a corporation,
may have the benefit of the law as a
voluntary bankrupt" That is to say
that any debtor, except an incOrporat-
ed concern, may go into bankruptcy
and relieve himself Of the burden Of
debt by surrendering all property liable
to execution. The penalties, however,
for concealment of property, or decep-
tive act or fraudulenttransfer are made
severe, Every debtor is entitled to
the exemptions under the laws of the
state in which he resides.
For involuntary bankruptcy the law
provides that "any person, except a
wage-earner, or person engaged
chiefly in farming or tillage Of the soil,
any unincorporated company, and any
corporation engaged principally in
manufacturing, trading, printing, pub
fishing or mercantile pursuits, owing
debts to the amount of 81 200 or over,
may be adjudged an involuntary bank
rupt upon default or an impartial trial,
but not national banks or banks incOr-
porated under and state or territory" f"
In this connection the law says:
"Acts of bankruptcy by a person
shall consist of his having conveyed,
transferred, concealed or renewed any
part of his property with interest to
hinder of defraud his creditors over
o.her creditors; or suffered or permit
ted, while insolvent, any person to OBJ
tain a preference through legal pro-
ceedings, and not having at least five
days before q sale or final disposition
of any property affected by such pref
erence vacated or discharged such
preference; or made a general assign
ment for the benefit of his creditors; OF
admitted in writing his inability to pay
his debts and his willingness to be ad-
Judged a bankrupt on that ground.
The complete defense against the
bankruptcy procedure is proof that the
debtor is not insolvent. Partnership
property cannot be placed in bank
ruptcy, without the consent or bank.
ruptcy of all the partners. The invol-
untary bankruptcy of any debtor car
be brought before the court upon peti'
tion of creditor holding claims Tin ex-
cess of securities) amounting to MOI
less than $500. If the alleged bank
rupt has less than twelve creditors, one
creditor may maintain the proceedings
if there are more creditors three may
maintain them. The courts having
jurisdiction are the FedeIal District
Courts. the Supreme Court of the Dis
trict of Columbia, and the United
States courts of Indian Territory and
Alaska. A creditor may file petition
at any time within four months after
he has learned of the commission O.
the act of bankruptcy. A bankrup
may offer terms of composition after
but not before, he has been examined
in open court or at meeting of hi
creditors. The Judge shall confirm {
composition if he is satisfied it is fol
the best interest of the creditors, an(
that there is no fraud or other bar tC
the discharge of the debtor. Debts no
affected by discharge in bankruptcy
are due taxes, Federal, state, count.
and municipal, judgments in action
for frauds or other unlawful acts; debt
which had not been scheduled in tim
for allowance, unless the creditor hat
actual knowledge er notice Of the bank
ruptcy proceedings and debts incurre'
by embezzlement, misappropriation Q
defalcation.
Procedure in bankruptcy is begu
by filing petition. Ten days are al
lowed for filing the answer. Issue
raised will be determined by the court
Provision is made for appeals to tn
United States Circuit Court of Appeal
and the Supreme Court Of the Unite
States. The law gives specific instruC
tions in regard to proofs of claims, an
methods of procedure, etc., and alike
punishment of frauds, concealmenti
etc, The act is to take effect from ii
, passage, but no petition for voluntar
bankruptcy can be filed until after Oh
month has elapsed from the date of il
passage, and no petition for involul