Case Name: In re GREEN et al.
Court: United States District Court for the Eastern District of Pennsylvania
Jurisdiction: United States
Decision Date: 1901-01-26
Citations: 106 F. 313
Docket Number: No. 845
Parties: In re GREEN et al.
Judges: 
Reporter: Federal Reporter
Volume: 106
Pages: 313–314

Head Matter:
In re GREEN et al.
(District Court, E. D. Pennsylvania.
January 26, 1901.)
No. 845.
Bankruptcy — -Acts ov Bankruptcy' — Constructive General Assignment.
A confession of judgment by a debtor to a trustee for all his creditors amounts to a general assignment for the benefit of creditors, under the law of Pennsylvania, and constitutes an act. of bankruptcy, under Bankr. Act 1898, § 3a, cl. 4.
In Bankruptcy.
On motion for adjudication.
Jos. L. Greenwald and Clinton O. Mayer, for creditors.
Henry Williams, for bankrupt.

Opinion:
J. B. McPHEBSON, District Judge.
From the petition and answer, it appears that on December 5, 1900, the bankrupts confessed judgment for the sum of $9,248.70 to Philip Silverman as trustee for all their creditors, and that this judgment was entered of record upon December 7th, and an execution issued thereon; the judgment and execution becoming a lien upon all their property. Objection is made to the adjudication upon the ground that the confession of judgment was not a preference, because it was intended to benefit all the creditors alike, in proportion to the respective amounts of their claims. It-may be true that the confession was not a preference; but under the law of Pennsylvania it clearly amounted to a general assignment for the benefit of creditors, and was therefore an act of bankruptcy.
The adjudication will be entered as" prayed. .