The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-11-29
NEW BANKRUPTCY RULES
REGULATIONS PROMULGATED BY
THE FEDERAL SUPREME COURT
For the Government of Clerks and
Bankruptcy May he Filed.

Sldl6S supreme court through JUS
tice Gray announced the new bankruptcy
rules, which it was authorized to frame and
promulgate under the national bankruptcy
act of July 1, 1885. The rules have been
awaited with much interest, as a number OF
courts declined to proceed with bankruptcy
cases until the Supreme Court announced
the new rules. Justice Gray announced
that the new rules would take effect on
Monday. Jan. 2, 1899. and that all proceed
ings heretofore taken substantially in con-
formity to the act and of the regulations
of 1867, far as practicable, would be up
held. The blank forms to accompany the
rules, he said, would not be ready for dis
tribution for some time, owing to proof
revision.
The rules are preceded by an order pre-
scribing the proceedings in bankruptcy UNI
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
lin substantial conformity either with the
provisions of these general orders or else
with the general orders established by this
court under the bankruptcy act of 1867 and
with any general rules or special orders of
the courts in bankruptcy, they shall stand
good, subject, however, to such further reg
ulation by 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 pro-
ceedings> except those entered by the ref
cree The docket is to be at all times open
to public inspection
Rules ?, and relate, successfully to the
filing Of papers, to processes, to the con-
! duct of proceedings and to frame of Pc
! titions The clerk is required to indorse
on each paper filed the time of it's receipt.
! All processes are to issue under the seal of
! the court. 1t is required that all petitions
and schedules shall be plainly written and
without abbreviation or interlineation.
Under the head of Conduct of Proceed
| ings' Rule 1, it is provided that Proceed
| ings may be conducted by the bankrupt in
| person in his own behalf, or by petition
| ing or opposin creditor; but creditor will
only be above to manage before the court
| his individual ..terest. Every party may
appear and conduct the proceedings by at
torney, who shall be am attorney or COUNSEL
| Tor authorized 10 practice in the Circuit or
District Court. Notices and orders not re-
quired to be served on the party personally
may be served upon his attorney.
WHEN PETITIONS WILL BE HEARD.
Rule relates to petitions in different
districts. I'm case two or more petitions
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 that first alleged, if such earlier act
| is charged IN either of the other petitions;
and in casesof two or more petitions against
| the same partnership in different courts,
each having Jurisdiction over the case, the
petition first filed shall be first heard. and
may be amended by the insertion or an
allegation of an earlier act of bankruptcy
than the first heard, If the earlier act is
charged in either of the other petitions;
and, in either case the proceedings the
other petitions may be stayed until an adj
! judication is made upon the petition first
heard; and the court which makes the first
adjudication of bankruptcy shall retain
til closed"
In the matter of priority and in cases
! where two or more petitions are filed by
creditors against a common debtor alleging
| separate acts of bankruptcy or different
days, it is provided by Rule that prefer
ence shall be given 10 the petition alleging
the earliest act of bankruptcy. In case all
the petitions name the same day for the act
| the cases are to be consolidated.
Rule provides that any member of n
| partnership, who refuses to join in a petit
ton to have the partnership declared bank
rupt, shall be entitled to resist the prayer OF
| the petition in the same manner as If the
| petition had been filed by a creditor of the
partnership, and to make all defealses which
any debtor proceeded against is entitled to
| take by the provisions of the act.
| Rule provides that in all cases of invoI-
untary bankruptcy In which the bankrupt
| duty Of the petitioning creditor to file. with
| in FIVE days schedule giving names and
| places Of residence of all the creditors OF
| the bankrupt. according to his best infor-
nation If the debtor is found the petit
toner may apply for an attachment against
/ the debtor to furnish a schedule.
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 schedule.
DUTIES OF REFEREES.
| The duties of referees are prescribed by
the twelfth rule. This rule provides that
| the order referring a case shall name day
! upon which the bankrupt shall attend be-
1 fore the referee, and that from that day
| the bankrupt shall be subject to the orders
of the court in all matters relating to his
bankruptcy The referee is to be imme-
| diately notified of his appointment and
| thereafter practically all the proceedings
are to be had before the referee. 1t is also
required that the time and place the refer
| ees shall act shall be liked by special order
Of the. judge or of the referee. Applca-
| tons for discharge or for approval of a
composition, or for an injunction to stay
| proceedings, are 10 be heard and decided by
| the Judge But he may refer the applica-
! ton to the referee to ascertain ana report
| the facts.
Rule 10 allows either the judge or the ref
creditors, but allows his removal by the
/ Judge only.
Rule IA forbids the appointment of trustees
| by the courts.
| Rule Is renders it allowable to dispense
with trusts III cases where there are no as
SetS.
Rule 16 provides for the immediate notid-
cation to the referee of his acceptance.
The duties of trustees are outlined by Rule
| IT, One of these requires him to prepare a
| complete inventory of all the bankrupts
| property coming into his possession. He is
| to make report to the court under this pro-
ceeding within twenty days. giving the esti-
mated value of each article. To this
| schedule creditors are allowed to take eX-
/ ceptiOns within twenty days. In such cases
| the referee is authorized To require the eX-
| ceptions to be argued and Is required, at
/ the request Of either party, TO certify them
| TO the court for final determination. Fail
ure of the trustee to file statement rem
| ders him liable to removal from office. All
| of the accounts of trustees to be referred
! to the referee for audit
| The regulations for the sale of property
/ made by Rule Is provide that all sales shall
| be made by public auction unless otherwise
| ordered by the court. Upon application to
| trustee may be authorized to sell any speci-
| fled portion of the bankrupts estate at pri-
| vate sale. Upon petition by bankrupt,
creditor, receiver or trustee setting forth
| that a part or the whole OF am estate il
perishable aud that there will be loss If the
same Is not sold Immediately the court may
| order the same to he sold, with or without
notice to the creditors. and the proceeds
| to be deposited I'm court.
PROOF OF DEBTS
Rule q relates to the proof of debts. The