Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-07-20
THE NEW BANKRUPTCY LAW.
A SImplihed Syllabus of 'Ehis Most
Important Measure.

The bankruptcy law, approved by the
President on July /. 1898. and now in
| effect, is vitally interesting to all classes
of citizens, and especially so to merchants.
Below an attempt is made to give a
brief outline of the salient features Of the
law. 1t provides for both voluntary and
involuntary bankruptcy, and while in
effect at present, petitions In voluntary
bankruptcy may not be filed until after
August /, 1898 and petitions in involuntary
bankruptcy not until after october ], 1898,
careful provision is made for a just and
equitable distribution Of the bankrupt
assets, and severe penalties are prescribed
for those who undertake to violate the
law by fraudulently concealing or making
away with their possessions.
The United States District Court for
the district in which the debtor resides
or in which his property is located has
exclusive original Jurisdiction. Appeals
may be taken TO the Circuit Court of APP
peals. and where the amount in contro-
very Is 5000 or more, to the Supreme
Court.
WHO MAY BECOME BANKRUPT.
ANY person. except a corporation, who
owes debts, may file petition praying to
be adjudged a bankrupt, but there are
only five grounds upon which one may be
forced into bankruptcy:
1. That he has made a fraudulent con-
veyance of the whole or part of his
property with intent TO hinder, delay, or
defraud his creditors.
2 That he being insoKent has attempt
ed to prefer one or more creditors.
3. That he has permitted, while insol-
vent, a creditor TO obtain preference
by legal proceedings.
4. That he has made n general assign
ment for the benefit of his creditors.
5. That he was admitted in writing his
inability 10 pay his debts. and his willing
ness TO be declared bankrupt.
A person shall be deemed insolvent
whenever the aggregate OF his property.
exclusive of any property which he may
have conveyed, transferred concealed. or
or permitted to be concealed or |
with intent to defraud, hinder |
or delay his creditors. shall not, at n fair |
be sufficient to pay his debts. |
Wage-earners. farmers, national banks, |
and banks incorporated under State laws |
cannot be forced into bankruptcy.
Any natural person. any unincorporated |
company, and any corporation engaged |
in manufacturing trading,
printing. publishing. or mercantile pur-
SUITS, and private bankers, owing debts
to the amount of $1,000 or over may be
adjudged an involuntary bankrupt.
BANKRUPT PARTNERSHIPS.
A partnership may be declared a bank
rupt. The net proceeds OF partnership
property shall be applied to partnership
lebts, and the net proceeds of individual
property to the individual debts OF the
partners. If one or more. but not all the
members of a partnership be adjudged
the partnership property shall
lot be administered in bankruptcy II a
member or members OF the partnership
lot adjudged bankrupt will undertake to
ettle the partnership business and ac-
cunt for the interest OF the BANKRUPT
member or members.
Exemptions under existing laws are not
impaired or affected in any manner.
After examination bankrupt may offer
o compromise his debts. and after gain
az the consent OF bis creditors. the Judge {