The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-10
RULES IN BANKRUPTCY COURTS.
Attorneys Who Do Not Know Them
Should Not Accept Fees.

An opinion was handed down yesterday
by Judge Purnell in bankruptcy case, in
which pretty plain lecture is read to
attorneys and officers in the bankruptcy
courts of this district.
1t is the opinion in the case of j. & e.
Maloney ct al. VS.. Willis Ward, of Nash
county--an involuntary proceeding in
bankruptcy. in which there were many
Irregularities and violations of the rules
prescribed for such proceedings.
Commenting upon these things Judge
Purnell has this to say in course of his
opinion;
With the increased volume OF business in the
courts of this district it is impossible TO ex-
anime every pleading, order and other process
filed or presented for approval. Officers and at
torneys must Of necessity be depended on in a
great measure, especially in bankruptcy pro
ceedings wherein il is of the first Importance
to their clients for attorneys, who are paid for
their services, to that all proceedings are
regular in strict accordance with the act OF
Congress, for otherwise even though he may
run the gauntlet and obtain formal discharge
it may prove mocking delusion.
The courts of BANKRUPTCY being always open all
adjudications, orders and DEGREES remain in the
breast of the court Discharges may be at
tackled by parties in interest at any time within
a year and revoked. Section 10 A. When
error is discovered it is within the power of the
court and to the interest OF all parties TO correct
possible.
There are but two methods by which a person
can be declared bankrupt, / e. Il voluntary pro-
ceeding on his own petition and OH the petition
of his creditors setting out acts an act OF
bankruptcy as prescribed by the statute. In an
involuntary proceeding an order by consent Is
not sufficient upon which to have other parties
than the one against whom the petition Is hled
adjUdged bankrupts, even though they be CON
nected with the defendant against whom petit
ton is filed. as partners parties III interest or
dino
nerships is provided for in the statute, but tins
proceeding does not come within the provision
and was an involuntary proceeding against Willis
Ward, individually. The fact that he happened
to be a partner with Jones in one firm and with
Cawthorn in another would not necessarily
draw into the proceeding the two commercial
firms justify each member OF such firms TO
come into court, themselves from comply
ing with the law by paying cost and being ad-
judged bankrupts even by consent order. II
these several parties desire to avail themselves
of the benefits of the bankrupt law, they must
file their individual petitions, make the depos-
its required and proceed strict juris. The petit
ton which is the basis of this proceeding, does
not ask for an adjudication as to any one except
Willis Ward. process to any ones property
except that of Willis Ward, and it would be an
anomalous construction Of the law and haru,
ship on the officers (whose fees are too small
at best) which the court will not tolerate or
permit, TO allow every one with whom he had any
business relations, whole neighborhood II nee
| essary, to come into court even by consent OF
| by the petitionng creditors and in clandestine
way get discharge from their debts
The proceeding as to Willis Ward will be re-
| referred to the referee of the Second division
OF the district with instructions to read, consider
and inwardly digest Section 80 with other pro
| visions of the bankrupt act relating to the
duties of referee and proceed accordingly.
Section IA A. requires the judge to hear petit
| tions for discharge. He alone can grant a dis,
| charge in bankruptcy. For the convenience of
parties in distant parts of the district general
order of reference adopted September 18th,
1895. being District Rule 8, as follows:
The application of the bankrupt for dis
| charge, and the deposit OF sufficient sum to
| cover the expense of postage and publication Of
! notice of final meeting in case there be no as
sets, shall be made before the referee, who shall
| make the order to show cause returnable before
himself, preside at the meeting and at its close,
or within three days thereafter, forward to the
judge his certificate of proceedings and conform
| ity the exceptions to discharge. If any and a
blank certificate of discharge prepared for sigma
turc If there be no exceptions.
This is still in force and Is for the conVen-
fence of parties interested. These petitions are
heard by the judge on testimony and proceed
ings thus had and where there is objection, after
| due notice to all. snap judgments are not
| contemplated or permitted.
The bankrupt law contemplates that the detail
work in bankruptcy proceedings shall be done py
| the officers provided for in the act assisted by
| the bankrupt, his attorneys and the attorneys
| of the petitioning creditors. The forms are
| all prescribed by the Supreme court and sets
NAV be purchased trfng cost. The law, rules
| and forms may De easily uhueistoou " oiirc
| and attorneys who have business III TINS dlyl-
| sion Of the courts Parties who cannot give the
| time for an understanding of the law and pro-
| cedure should not accept office, or fees as at
| torncvs. Ii is not contemplated that the Judge
| can or viii assist or instruct either. several
| proceedings Of late have made necessary The
! adoption of rule, which will be enforced, that
| petitions in bankruptcy will not be filed or con
sidered unless they on the prescribed printed
| forms Written or typewriter petitions and
! schedules will be returned to parties without
| action The officers of the district courts are
so instructed.