Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-01-07
PROCEDURE IN
BANKRUPTCY.
Differences Between Voluntary and
and involuntary Cases.
FULL LIST OF BOTH CLASSES
only Two Discharges In Utah Thus
fnr- Safeguards tor Creditor nnd
Debtor Alike.

The general Salt Lake public has but
n hasy idea of the new Bankruptcy
law or az its title T.; AN act TO es-
tabllsh uniform system N bankrupt
cy throughout the United statcs.'
one cause Of this IL due to the fact
that most Of It's workings take place In
what u known amorR lawyers as
chambers" ana not In the open court.
In fact. the ontlrc proceedings occur In
n measure. out ~ the public view. In the
apartments Of the referee In bankrupt
cy. and are seldom seen In the public
print.
PURPOSE OF THE LAW.
The law was enacted for two-fold
purpose-that OF helping the honest
debtor. ovortakcn by disaster and fol-
lowed by II until u becomes impossible
Tor him 20 ever clear himself from his
burden ~ debt. without heroic relief;
also for the purpose of compelling the
dishonest debtor to deal Justly by his
creditors. ana to. ~ far ~ possible.
protect those creditors from loss.
Hence thorc are two classes ~ bank
rupts. voluntary ana Involuntary. a
voluntary bankrupt, according to Sec
ton Z OF the act referred Ia. can be- any
person who owes debts 4 corporation.
however. " excepted. Sub section o.
10 the snmc section states that Any
natural person except wngc-eRrncr
or "a person engaged chiefly In farming
or the tiliagc ~ The soil. any incprpor-
hted company. and any corporation on
gagged principally In manufacturing,
trading. printing, publishing or mvr-
camille pursuits. owing debts a. tho
amount ~ one thousand dollars or
over. may BE- ndjudgcd Involuntary
bankrupt upon default or an impartial
trial, aud shall be- subject to the pro-
visions and entitled to tho benefits ~
this net. Private bankers. but not ma
uonal banks or banks Incorporated un-
der state or territorial laws may be-
ndjudgcd Involuntary bnnkrupta"
Acts ~ bankruptcy shalt consist NJ
any one having conveyed, transferred.
concealed or removed or permitted a.
be- concealed or removed any part ~
his property with intent to defrnud his
creditors. or who had transferred.
while insoivcnt. any properly with In
tent ~ prefer one creditor 10 another.
a petition may be filed az any time
within four months hftor an act ~
bankruptcy has been committed.
REFEREE AND TRUSTEE.
The United states district courts
have been designated Ia Try all bank
ruptcy cases. In addition to the Judges
81 these courts. two new Offices have
hecn created by the nct-thusc Of
referee and trustee"
The duties o. the referee are To de-
clare diyiIcnin fxamlue all schedules
OF property and lists Of creditors fled
by bankrupis. furnish such Information
~ may be- asked BY those Interested
q a.
Of evidence and receive III papers con-
corning the cases from the clerk 81 tho
district court.
The trustee. practically N the admin
irtrator NJ the estates IN bankruptcy
and winds II up under the direction Of
tho court,
TWO LOCAL DISCHARGES.
The law has placed many safeguards
around the creditor, ana II 80 careful
IN It, workings. that only two men IN
the state OF Utah have NJ yet been dis
charged by tho court since It's enact
ment. These arr NJ. T.. Wells 81 Salt
Lake city and John H. Bush. brigham
Y. Hampton has applied for his dis
charge. the case coming up ON Monday
next
FOR THE HONEST DEBTOR.
The means by which the honest
debtor can throw on his burden II
debt ana begin life anew. In brief. are
M follows! The flrrt step taken by the
voluntary bankrupt IL To file "a petition
In bankruptcy Ia the United states
district court. In this petition he sets
forth his liabilities and asrctr giving
a list OF his creditors nnd the amounts
of the obligations. The court then takes
the matter up and decides as to whcth-
or he IN n bankrupt or not. N he II adj
Judged bankrupt the whole matter
IN turned over 10 tho referee. The Judge
nNes day whom the bankrupt shall
appear before the referee. who APP
points a certain time for the
"FfRsT' MEETING OF CREDITORS,
srcviouH to this he publishes In a
Newspaper. designated by the Judge. aa
the Official organ ~ the court, q notice
OF such meeting. The referee also gives
ten days notice through the mails ia
each OF the scheduled creditors Of tho
day of such meetings. The law provides
that the notice by mail must be ten
days before the meeting and the one
through the press az least one week
before that time ON the day ~ the
meeting all the creditors. who wish 10.
appear. nle with the referee. THEFT
Chains. Only claims that ure verified
and filed with the referee are noticed or
allowed. The fact that claims arr
scheduled by the bankrupt does not
mako thcm valid unless they are al
lowed by the referee.
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