The herald., 1898-11-29
RULES FOR BANKRUPTS.
TO TAKE EFFECT ON JANUARY
SECOND
Proceedings Prescribed by Which
Debts May Be Dodged and e
Fresh Start Made


promulgate under the national bankruptcy
act of July |, lS9S The rules have been
awaited with much interest as 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, Janu-
ary ., 1899, and that all proceedings here
tofore taken subsequently in conformity
with the act and to the regulations OF 1867,
as far as practicable, would be upheld lhe
rules, while promulgated at this 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-
scribinc the proceedings in bankruptcy un-
der the law previous to the day on which the
rules go into effect.
Under the head of conduct OF proceed
irgs." rule four, it is provided that pro
ceedines may be conducted by the bankrupt
in person in his own behalf, or bya petition
ing or opposing 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
torrey who shall be an attorney or eoun-
selor authorized to practice in the circuit or
district court,
Notices and orders not required to be
served on the party personally may De
served on his attorney.
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 on different
davs. it is provided by rule seven that pref
erence shall be given to the petition alleg-
ing the earliest act OF bankruptcy. In case
| all the petitions name the same gay ior the
act. the eases are to be consolidated.
Rule s provides that any member OF
partnership declared bankrupt shall be
entitled to resist the prayer OF the petition
in the same manner as if the petition had
been fled by a creditor OF the partnership
and to make all defenses which any debtor
proceeded against is entitled to take by
the provisions of the act.
Rule 0 relates to cases of involuntary
bankruptcy, in which the bankrupt is alb
sent or cannot be found.
Rule 10 provides for the indemnity of of
ficers of the court for expenses prior to the
performance of duties.
Rule IL allows amendments to petitions
and schedules. The duties OF referees are
prescribed by the 18th rule.
Rule l3 allows either the judge or referee
to pass upon a trustee appointed by credit
ors. but allows his removal by the judge
only.
Rule IA forbids the appointment of trus
tees by the courts.
Rule Is renders it allowable to dispense
with the trustees in cases where there are
no assets.
Rule l6 provides for the immediate noti-
fcatiop to the referee OF his acceptance.
The duties of trustees are outlined by rule
IL
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.
Rule u relates to the proof of debts
Other provisions require that notices. of
proceedings shall be mailed to all creditors
requiring them that the claun1 OF persons
contingenty liable for the bankrupt may be
proved in the name of the creditor unknown
by the party contingently liable; that ref
erees may allow the re-eXamination OF claims
against a bankrupt estate when desired by
the trustee or a creditor. and that claims
which have been assigned before proof shall
be supported by a deposition of the owner
at the time of the commencement OF pro-
ceedings. setting forth the true condition OF
the debt, and that it is entirely unsecured,
or if secured, the security as is required in
proving secured claims.
Rule % relates to the taking of testimony.
Rule % relates to orders of the referee and
rule "a to the transmission OF proved claims
to the clerk of the court
Rule % provides for special meetings OF
creditors.
Rule 26 requires the referee to keep ac-
counts of expenses and rule p authorizes
review by the Judge of any order made by
the referee on petition of the bankrupt
creditor or trustee.
Rule 2S permits the filing of petitions fol
redemptions of property.
Rule % relates to keeping OF accounts con
cerning money deposited and rule 80 to the
imprisonment of debtors. The latter rule
| i, as follows:
'lf, at the time of preferring his petition
tie debtor shall be imprisoned, the court
upon application. may order him to be pro
duced upon habeas corpus by the jailor, OF
any officer in whose custody he may be, be
lpIc tHE Itleltt, lOI tue purpose Vi ltstlIl llle
in any manner relating to his bankruptcy
the court may, upon like application, dis
charge him from such imprisonment. If the
petitioner during the pendency of the pro
ceedngs in bankruptcy be arrested or i'm
prsontd upon process in any civil action, the
district court upon his application, may issue
a writ of habeas corpus to bring him before
the court to ascertain whether such process
has been issued for the collection of any
claim provabc in bankruptcy and if so prov
able he shall be discharged if not, he sha
be remanded t!the custody in which he may
lawfully be-
Rules 81 and 80 deal with petitions, dis
charge of bankrupts and with proceeding,
in opposition to such discharge.
Rule SO provides for arbitration OF some
demands against the estates of bankrupt,
upon the application of trustees.
Rule "a relates to the cost of continued ad
iudication, and rule 3J to the compensation
OF officials.
The bankruptcy act prescribcs the fees
and these provide that the fee herein nance
shall be in full compensation.
Appeals TO courts other than the United
States supreme court arc regulated by the
rules governing appeals in equity cases il
Cnited States courts, as provided by rule SO
The same rule provides for appeals to tn,
United States supreme court, but require
that they he taken within thirty days, Civ
ing the Judge of the court appealed from or {
Justice of the supreme court the right t,
grant the appeak
Rule 81 allows the Judge by special orde