Year: 1867

SEC. 3S. ndbeit further enacted, That the ming


of petition for adjudication in bankruptcy, eiti!-
cr by debtor in his own behall, OF Dy any creul-
tor against debtor, upon when an order may pe
issued by the court, by a register III the man.
ner nrovded in section four, shall be deemed and
taken to be the commencement of proceedings in
bankruptcy under this act; the proceedings in all


cases of bankruptcy shall be deemed matters OF
record, but the same shall not be required to be


recorded large, but shall be carefully filed, kept,
and numbered in the office of the clerk OF the
+ court, and docket only, or short memorandum


thereof kept in books to be provided for that pur-
pose which shall be open to public inspection.
Copies of such records, duly certified under the


seal of the court shall in all cases be prima face
evidence of the facts therein stated Evidence or
examination in any of the proceedings under this


act may be taken before the court, or register in


bankruptcy, viva vocc or in writing, bciorea Com


missioner of the Circuit Court or by affidavit, or
on commission, and the court may direct refer


ence to register in bankruptcy, or other Suitable
person, to take and certify such examination, and
may compel the attendance of witnesses, the pro
ductiOn of books and papers, and the giving OF


testimony in the same manner as IN suits IN cqul-
ty in the Circuit Court


INVOLUNTARY BANKRUPTCY.


SEC. 80 And be 1T tMrther TeS0lgcd, That any per-


son residing and owing debts as aforesaid, who,


after the passage of this act, shall depart from the
State district or Territory, OF which he is an in


habitant with intent to defraud his creditors, or,


being absent, shall, with such intent, remain alb
sent; shall conceal himself to avoid the service


of legal process in any action for the recovery ola
debt or demand prOvable under this act; or shall
conceal remove any OF his property toayOid its
being attached, taken, or seqneStered on legal


process; or shall make any assignment, gift, sale,
conveyance or tranier of his estate, property,
rights or credits either within the United States
or elsewhere, with intent to delay, detIaud, or
hinder his creditors orwho has been arrested and


held in the custody under or by virtue OF mesne


process of execution, issued out of any court OF


any State district, Territory, within which


such debtor resides or his property, founded upon


q demand in its nature proyable against bank


rupts estate unuer this act, and for sum cNcee-


ding one hundred dollars, and such process is re-


manning in force and not discharged by payment,


or in any other manner provided by the law of


such State, district, Territory applicable there


to, for period OF seven days; or has been actual


ly imprisoned for more than seven days i'll a civil


action, founded on contract, for the sum of one


hundred dollars or upwards; or who, being bank


rupt or insolvCnt, or i'll contemplation OF bank


ruptcy or insolvency. shall make any payment,


Gift, grant sale, conveyance or transfer OF money,


or other property, estate, rights, or credits, or


give any warrant to confess judgement OrprOcurc


suffer his property to be taken on legal process


with intent to give preference to one or more of


his creditors, or to amy person or persons who are


may be liable for him endOrscrs. bail, sure


tics, otherwise, or with the intent, by such dis


position of his property, to defeat or delay the


operation of this act or who, being banker,


merchant, or trader, has fraudulently stopped or
suspended and not resumed payment OF his com


mercial paper within period of fourteen days


shall be deemed to have committed act of


bankruptcy, and, subject to TIE condition herein
after prescribed, shall be adiudged bankrupt,


on the petition of one or more of his creditors,


the aggregate of whose debts prOvable under this
act amount to at least two hundred and fifty, dol


lars provided such petition is brought within six
months after the act of bankruptcy shall have been
committed. And if such person shall be aiijudged
Il bankrupt, the assignee may recover back the
money or other property so paid, conveyed, sold,
assigned, or transferred contrary to this act, pro-
vided the person receiving such payment or con-
hII SOn1hlp hIIiFVp n
fraud on this act was intended, that the debtor
was insolvent, and such creditor shall hot be al
lowed to prove his debt in bankruptcy.


SEC. 20. ARddeH JuJftcj' otactea, That upon the
filing of the petition authorized by the next pre-
ccding section, if it shall appear that sufficient
grounds exist therefor, the court shall direct the
entry of an order requiring the debtor to appear
and show cause, at 4 court Of bankruptcy to be
holden at time to be specified in the order not
less than five days from the service thereof why
the prayer of the petition should not be granted
and may also, by its injunctions, restrain the
debtor, and any other person. in the meantime
from making any transfer disposition of any
part of the debtors property not excepted BY this
act from the operation thereof and from any inter
ference Herewith, aid if it shall app that there


is probable for believing that the debtor is
about to leave the district, or to remove con-
cea his goods and chatteS or his evidence OF prop
erty, or make any fraudulent conveyance or dis |
position thereof. the court may issue warrant to
the marshal OF the district, commanding him to /,
arrest the alleged bankrupt and him safely keep,
unless lie shall give bail to the satisfaction of the
court for his appearance from time to time, as re-
quired by the court until the dccison OF the court
unOn the petition or the further or Ter Ofthc court
and forthwith to take possession Professionally of
all the property and effects Of the debtor, and .
safely keep the same until the fIrt order Of tile
court. A copy of the petition and of such order
to show cause shall be served on such debtor by |
delivering the same to him personally, or leaving |
the same 1t his last or usual place of abode: or
if such debtor cannot be found, or his place of !
residence ascertancd, service shall be made by |
tin,, in
rect No further proceedings, unless the debtor !
appear and consent thereto shall be had until !
proof shall have been given, 20 the satisfaction of
the court, of such service or publication; and if |
such proof be not given on the return dav of such
order, the proceedings shall be adjourned and an |
order made that the notice be forthwith SO served
published.


SEC. Il. And be it ti,7tAer enacted, That on such |
return day CT ad jOurned day if the notice has been
duly served or published, or shall be waived by |
the appearance and consent Of the debtor the !
court shall proceed summary to hear the allcgl- |
tions Of the petitioner and debtor, and may ad- !
Journ the proceedings from time to time on good |
shown, and shall, if the debtor on the same !
day so demand in writing, order !, trial by jury at |
the first term OF the court at which jury shall be |
in attendance, ascertain the fact of such ALLEGED
Bankruptcy; and if, upon such hearing or trial |
the debtor proves to the satisfaction of the court
or OF the jury, as the may be, that the facts
set forth i'll the petition are not true or that the
debtor has paid and satisfied all liens upon his !
property in case the existence of such liens were
the sole ground Of the proceeding, the proceed |
lngs shall be dismissed and the respondent shall
recover costs.


SEC. AZ. 4Gd be it further enacted, That if the |
facts set forth i'll the petition found to be true
or If default be made by the debtor to appear pur-
suant to the ORDER urOn due pr0ofofservice there
OF being made, the court shall adiudge the debtor
to be bankrupt, and, as SUCH subject to the pro-
visions of this act and shall forthwith issue war
rant to take possession of the estate of the debtor
The warrant shall be directed and the property
of the debtor shall be taken thereon and shall be
assigned and distributed in the same manner and
with similar proceedings to those hereinbefore
provided for the taking possession, assignment,
and distribution OF the property of the debtor up
on his own petition. The order of adjudication
OF bankruptcy shall require the bankrupt forth
with, or within such number of days not exceed
ing five after the date ofthe order or notice there
of, as shall by the order be prescribed, to make
and deliver or transmit by mail post paid to the
messenger, a schedule of the creditors anu an in
ventory of his estate in the form and verified in
the manner required of petitioning debtor by
section thirteen. If the debtor has failed to an
pear in person, or by attorney certified copv of
the adjudication shall be forthwith served on him
by delivery or publication in the manner herein
before provided for the service of the order TO
show cause; and fthe bankrupt is absent or can
not be found, such schedule and inventory shall
be prepared by the messenger and the aSsionee
from the best information they can obtain. IF The
petltlonlng creditor shall not appear and proceed
6ov oI;