The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1898-08-24
The Bankrupt Law.

The Few bankrupt law, passed by coo-
gress towards the close of the recent
session, and since approved by the
president, is carefully drawn paper,
evidently intended to do justice to
debtor and creditor alike Under its
provisions for petitions voluntary bank
ruptcy may be filed at auy time after
the law shall have gone into effect.
Adjudicatiops of involuntary bankruptcy
may be sought at any time within fo"r
moaths after the approval of the act.
Any person who owes debt and
whose property, upon fair valuation.
will rot pay the same, may file petit
ton in bankruptcy ant obtain dis
charge from all debts. Any natural
! person, except wageearncr, or person
engaged chiefly in farming, any uuiu-
corporated company, and any eorpo.
ration. engaged principally 10 manu-.
featuring, trading, or mercantile pur-
suits, owing debts to the amount of
$1,000 or over. may be adjudged an
involuntary bankrupt. Private bank
ers are included 10 this, while national
banks. or banks incorporated under
State laws, cannot be proceeded against
in this way. Partnerships may be
adjudged bankrupt.
The cost of bankruptcy, by this law,
is reduced to the minimum The bank.
rups is required, ca fling petition, to
deposit with the CLERK, SO for the re-
feree. aud S. for the trustee. This
is to be full compensation for the services
rendered in each case by these officers.
There is a provision in the law, that
in cases where the debtor has no means
to pay the expenses of proceedings, he
shall becharged no fees or costs.
1t is now unlawful for the insoIvent
people to make preference or give any
undue advantage to creditors. There
are conditions where business trapsac-
tions of daily occurrence may be con-
Quoted with iosolvents without dagger,
but as a general thing it s oot safe for.
creditors to get satisfaction for their
debts from insolvents. The practice
under toe present bankrupt law will not
differ much from that under the law OF
1867. The general principles are nec-
essarily about the same. The most i'm.
portant difference to the people is the
great reduction in the fees and costs
Under the present law the bankrupt
may, after the expiration of one month
after fling his petition in bankruptcy,
apply for his discharge.
The inability of the person Who is q
co-deb,or with. or guarantor, or in any
way surety for e bankrupt, is not al.
tered by the discharge of a bankrupt.
The business of the bankrupt court will
be done by an officer. called referee.
The estates will be wound up by s'us-
tee. The creditors elect trustee at
the FIRST meeting. If they do not elect
him the court will appoint one. Referees
and trustees are bonded officials. 10
involuntary bankruptcy it requires three
or more creditors who have provable
claims to the amount Of $500 against
an alleged bankrupt iu excess Of any
security they may have, to file petit
ton against a debtor.
Debts which bave priority, are O
Taxes due the United States. the State,
the county. or city or town (2) the
cost of preserving the estate subsequent
to the fling Of petition 90 the fling
fees paid by creditors iu involuntary
cases (4) cost of administration ln-
cludiug the fees aud mileage payable to
witnesses 60 wages due workuen, /,
clerks, or servants, which have been
earued three months before the date Of
the commencement Of the proceedings
uot to exceed $500 to each claimant !;
CO. debts owing to any person who by
the laws of the United States or the
State are entitled to priority these
are to be paid before the creditors re-
ceive anything.
These are the principal poiots which
interest the general public. and outline
pretty clearly the scope Of the new
bankruptcy law
The district judge sill name bank
ruptcy districts and appoint referees in
sncb number as he may deem necessary
to transact the business
The act was approved by the presl
dent on the 3rd instant. and il there
fore goes into effect on the 3rd Of Au-
gust.-Columb bia Register.