Year: 1867




The substance of this most important bill, which


we find in the columns of the Crescent of the 1lth


is follows:


Section l establishes the several district courts O.


the United States courts of bankruptcy in addition


to the other original Jurisdiction they have. ,
Section gives the circuit courts equity power tc


supervise the proceedings of the district courtsin


bankruptcy litigation and affairs and in addition tc


this power gives them concurrent jurisdiction in the


same matters.


SECTION provides for the appointment in each con-


greSsonal district upon the nomination of the chief
justice of the Supreme Court, of one or more regis


tiers to be counseors in the district cocrts whose duty


1t shall be to assist the district judges in the perform


ance of duty in bankruptcy cases. Bonds in $1,000


no interest in any of the suits, and ability take the


lroncad oath are the prerequisites of each register
| Section makes it the registers duty to adjudcate


upon, receive surrenders in and preside in bankrupt


cy proceedings. He is to compute property, dvi-
dendS, assign pro rata shares to creditors but bars
him from committing for contempt or in acting in
cases that 60 upon appeal.


Sections e, 7, s. 9 and 10 provide for the formula
OF legal proceedings i'll the of bankruptcy
recapulation Of the practice now in vogue in other
! litigation.


| Section II make $500 the limit of debts on which
to declare voluntary bankruptcy requires the bank
rupt to be Or become citizen of the United States
1ornds transfer OF property during pendency of pro-
ceedings, and demands full exhibit of debts and assets
on the part of the voluntary bankrupt.


Sections II, Is and 1t provide that the action in
bankruptcy shall go on should the bankrupt die the
| same as if he were in lesse that the creditors shall
appoint an assignee of the debtors estate
subject to the approval of the district Judge: that
everything be turned to the assignees whether
OF substance Or account for distribution eXccpt that
there shall be excepted from the operations of the pro-


VISIONS of this section the necessary household and
hchen furniture, and such other articles and neces
sarles OF such bankrupt the said assgnees shall de-
sIgnate and set apart having reference in the amount
to the family, condition and circumstances of the
bankrupt, but altogether not to exceed in value in
any case the sum of $50o aud also the wearing ap-
parel OF such bankrupt and that of his wife and chill
ofeh, ana the Uniform, arms and equ pments of any
person wro Is or has been soldier in the militia or
in the service of the United States and such other
property as now is Or hereafter shall be- exempt from
attachment of seizure levy execution by the laws
OF the unitel States and such other property not in
cluded in the foregoing exceptions as is exempted
from levy and sale upon execution other process or
order of court by the laws of the State in which the
bankrupt has his domicile at the time of the COM
mencement of the proceedings in bankruptcy, to an
amount not exceeding that allowed by such State ex
emption laws in force in the year 1864: P5ori9ed
That the foregoing exception shall operate as lmita-
ton upon the conveyance OF the, property of the
bankrupt to his asslgnees, and in 10 case shall the
property hereby excepted pass the assignees nor
the title OF the bankrupt thereto impaired Or affected
by any OF the provisions of this act; and the deter
minaon OF tie gnee in the matter shall on excep-


ton taken, be subject to the final decision of the said
court.


Sections Is, l6, I and IS give the assignee full
power to recover the properly of the debtor to be
distributed by whomsoever held require him to class
lfy and separate tie goods other effects empower
the assignee to choose arbitrators in matters Of dis
puted possession; and provide for the supervision
over and power to remove the assignees by the dis
trlct judge for shown. -


Sections 49, 20 and 81 CrGain that cIlims hn nr0vnl
in the same manner against the estate of de-
ceased PERSONS provide for set-ofs in mutual debts
between debtor and claimants; forbid suits against
the bankrupt by those creditors proving their claims
and provide that 1t any bankrupt, at the time Of adu
dlcation be liable upon any bill Of exchange prouIis-
sorry note other obligation, in respect of distinct
contracts as a member of two firms carrying
Oh separate and distinct trades and having distinct
estates to be wound up in bankruptcy, or as a sole
trader, and also memberdf frn the circumstance
that such firms are in whole i'll part composed of
the same individuals, that the sole contractor is
also one Of the joint contractors, shall prevent
proof and receipt of dividend in respect of such dis
tinct contracts against the estates respectively liable
upon such contracts.


Sections %, 23 aud "a require vcrfcation by oath
OF all claims by creditors and if corporation by
the proper officers for that purpose, be filed before
the register, if in foreign country before the con-
sui other diplomatic officer nearest adjacent and
that investigation can be and must he made by the
ludge IN case OF all doubtful claims.


Section % orders the sale and the holding for dis
tribution by the asst gnec Of all perishabe property
the title to which is not in dispute.


Section 26 provides for the examination of the |
bankrupt by the court either at its ewn option or at
the request of the assignee into all circumstances and
statement of the bankrupt who is punishable for con-
tempt for noncompliance with the order for examina
tion, and for good shown the wife of the bank
rupt may be called and similarly examined.


Section y subdivides priority of claims as follows:
First, servants wages under $50; second all the |
creditors pro rata without any preference either from
amount or date of claims, except that in where
in the bankrupt has become ball. surety or guarantor
Tor another, the compliance CT the latter with the
conditions must be shown before the claim is allowed


At the expiration of three months from the date of
The adjudication OF bankruptcy in any case much
earlier the court may direct the court, upon re-
quest Of the assignee, shall call general meeting of
The creditors Of which due notice shall be given and
he assignee shall then report and exhibit to the court
and to the creditors just and true accounts of all his
receipts and payments verified by his oath; and he
shall also produce and file vouchers for all payments
or which vouchers shall be required by any rule of
he court; be shall also submit the schedule of the
yankrupt's creditors and property amended, duly
-crfed by the bankrupt and statement of the whole
state of the bankrupt as then ascertained of the
property recovered and of the property outstanding
pecifyng the cause Of its being outstanding, also
What debts claims yet undetermined and stating
what sums remain IN his handS. At such meeting the
majority in value of the creditors present shall deter
nine whether any and what part of the proceeds of
he estate, after aeductng and returning sum sui-
lent to provide for all undetermined claims which by
of the distant residence of the creditor or for
ther sufficient reason have not been proycd and for
ther expenses and contingencies, shall be divided
mong the creditors but unless at least one-half in
aue of the creditors shall attend such meeting either
person by attorney it shall be the duty of the
s>gnee SO to determine In case dividend is or u,
cred, the register shall, within ten days after such
leeting, prepare list of creditors entitled to dvi-
end, and shall calculate and set opposite the name
f each creditor who has proved his caim the dyi-
end to which he is entitled out of the proceeds of
estate set apart for dividend; and shall forward
mail to every CREDITOR statement of the dividend


which he is entitled and such creditor shall be paid
y the assignee in such manner as the court NAV :
irec:.
Section 25provites'that the like proceedings shall
e had at the expiration of the next three months or
arer if practicable, and third meeting of the cred
ors shall then be called by the court, and final
ivdend then declared, unless any action at law OR
ait in equity be pending, unless ether estate
effects the debtor afterwa= come into the hands
the assignee, in which the assignee SHALL as :
BON may be, convert such estate or effects into
oney and within two months after the same shall be
converted, the shall be divided in manner Il
foresaid. Further dividends shall be made in like
,anner as often occasion requires; and, after the