Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-02-16
BANKRUPTCY LAW.
The Full Text Of the Changes Made
by Congress-.
A Document of Interest to Lawyers and
Citizens Generally.

these changes This bill was approved by
the President, February 5. and the amend
ments provided for are now part of the
national bankruptcy law
An Act to amend an Act entitled An
Act to establish uniform system OF
bankruptcy throughout the United
States approved July first, eighteen hum
ldred and ninety-eight.
BE it enacted by the Senate and House
of Representatives of the United States OF
America in Congress assembled, That
clause FIVE of section two of said Act be.
and the same is hereby, amended 50 as
to read as follows:
20 Authorize the business of bankrupts
TO be conducted for limited periods by re-
cevers, the marshals, or trustees. if nee
essary in the best interests of the estates.
and allow such officers additional com
pensation for such services, but not as a
preater rule than in this Act allowed
trustees for similar services:
Sec. 2 That clause four subdivision 6.
of section three of said Act, be, and the
same is hereby, amended so as to read as
follows:
'-or "a made a general assignment for
the benefit of mis- creditors or, being in
solvent. applied for a receiver or trustee
for his property or because of insolvency
a receiver or trustee has been put in
charge of his property under the laws OF
"a State. or Territory. or of the United
States.
Sec. ). That subdivision of Section four
of said Act be. and the same is hereby.
amended. so as to read as follows:
ID Any natural person, except "a wage
Garner. or a person engaged chiefly in
farming or the tillage of the soil. any
unincorporated company, and any corpor-
alton engaged principally in manufactur-
ing, trading, printing. publishing. mining.
or mercantile pursuits, owing debts TO
the amount Of one thousand dollars or
over, may be adjudged an involuntary
bankrupt upon default or an impartial
-t.I Il III.
visions and entitled t6S4he benefits of this
Act Private bankers. but not national
banks or banks incorporated under State
or Territorial laws. may be adjudged
involuntary bankrupts.
The bankruptcy of a corporation shall!
not release its officers directors, or stock
holders as such, from any Liability under
the laws of a State or Territory of the
United States
See l. That subdivision b of Section
fourteen Of said Act he. and the same is
hereby amended as to read as follows:
Il, The Judge shall hear the application
for a discharge, and such proofs and pleas
as may be made III opposition thereto by
parties in interest, at such time as Will
give parties in interest a reasonable OPP
portunity to be fully heard, and investi-
gate the merits Of the application and
discharge the applicant unless he has "a
committed an offense punishable by i'm
prisonment as herein provided; or ~
with intent to conceal his financial condi-
ton. destroyed, concealed, or failed to
keep books OF account or records from
which such condition might be ascer-
tanned; or 90 obtained property on credit
from any person upon materially false
statement in writing made to such person
for the purpose of obtaining such prop
erty on credit; or, a. at any time SubSe-
quent 10 the first day of the four
months imme diately preceding the filing
of the petition transferred removed de-
stroyed. CT concealed. or permitted to De
removed. dies trDNed concealed OF
his property with intent to hinder delay,
or defraud his creditors: Or % involua-
tary proceedings been granted dis
charge in bankruptcy within six years;
or 90 in the course of the proceedings in
bankruptcy refused to obey any lawfU1
order OF or to answer any material
question approved by the court
Sec ). That Section seventeen of said
Act he, and the same is hereby amended
so as to read as follows:
Sec. II. DEBTS NOT AFFECTED
BY A DISCHARGE a discharge in
bankruptcy shall release a bankrupt from
all of his provable debts. except such as
% are due as tax levied by the United
States. the State county, district pr
municipality in which he resides: 60 are
liabilities for obtaining property by false
pretenses or false representations, or for
wilful and malicious injuries to the person
or property of another. or for alimony
due or to become due, or for maintenance
or support of wife or child, or for Seduc
tion of an unmarried female, or for
criminal conversation; % have not been
duly scheduled in time for proof and al
lowance with the name of the creditor
if known to the bankrupt, unless such
creditor had notice or actual knowledge
of the proceedings in bankruptcy; or a.
were created by his fraud, enlightenment
misrepresentation. or defalcation while
acung as an officer or IN any nduclary
capacity.
Sec g. That subdivisions and b of
Section eighteen of said Act be, and the
same are hereby, amended SO as to read
as follows:
"a Upon the fling of IA petition for i'll
| voluntary bankruptcy. service thereof
| with write of subpoena, shall be mad,
| upon the person therein named as de
| PENDANT i'm the same manner that service
| of such process is now had upon the com
mencemcnt of a suit in equity III the
| courts of the United States, except that
| it shall be returnable within fifteen days
unless the Judge shall for cause fix a
| longer time; but in case personal service
cannot be made then notice shall be Civ
| en- by publication in the same manner and
| for the same time as provided by law for
notice by publication in suits to enforce
| a legal OF equitable lien in courts of the
| United States, except that, unless the
| judge shall otherwise direct the order
shall be published not more than once 4
| week for two consecutive weeks. and the
return day shall be ten days after the
| last publication unless the judge shall fol
| cause GN longer time
| "b The bankrupt. or any creditor may
| appe;,r and plead 10 the petition within
! five days after the return day. or within
such further time as the court may a.
! low
| Sec. Z. That subdivision a of Section
twenty -one of said Act be. and the same
! is hereby. amended so as to read as fol-
lows:
"a A court of bankruptcy may, upon
| application of any officer. bankrupt, or
creditor by order require any designated
| person. including the bankrupt and his
wife. TO appear in court or before a re-
fierce or the judge of any State court. To
he examined concerning the acts, conduct
or property of bankrupt whose estate
lis In process or administrati ton under this
Act: PROVIDED. That the wife may he
examined only touching business trans
acted by her or to which she is a party
land TO determine the fact whether she ias
transacted or been a party to any bust
ness of the bankrupt
! See. s. That subdivision of Section
ttwenty-three of said Act be. and the
same is hereby. amended SO as to read as
| follows:
ia Suits by the trustee shall only Do
| brought or prosecuted in the courts wnert
the bankrupt, whose estate is being al
ministered by such trustee. might have
brought or prosecuted them if proceed
ings in bankruptcy had not be-u inSti
tuted. unless by consent Of the proposes
ldefendan except suits for the recover.
of proDerVy under Section sixty. subd,-