Rensselaer Union, Volume 3, Number 41, Rensselaer, Jasper County, 6 July 1871 — The Bankrupt Law—Its Present Operation. [ARTICLE]

The Bankrupt Law—Its Present Operation.

Inquiries are so frequently made respecting this act, a.nd it* important provisions are so imperfectly understood by business men, ana cveu most members ol the Bar, that we have'thought it advisable to give a brief extract of Its leading features, which our readers may rely on as being correct as far as it gefts". J • There are three classes of debtors who may desire to apply for the benefit of the act, or, if unwilling, may be compelled by creditors to go through bankruptcy, viz.: those who owe debts contracted before January 1,1869, (which for convenience may be called old debts); those who owe debts contracted since ‘.bat date, which we call new deb's, and those who have both kinds of debts. The first class, if they owe more than S3OO, and are unable to pay all their debts in full, may file tbeir petition (and schedules showing their liabilities ar.d assets) with the Clerk of the United States District Court in the district where they reside; deposit SIOO or costs, and, if they surrender all their property which is not exempt by the laws of the* Btate existing j in 1864, and by the Bankrupt act) and commit no fraud, they can, in from three to seven months, receive a discharge from all their debts, excepting such as they may , ovfe as guardians, administrators, or certain (Other classes of trustees. This first! class of debtors will generally have no diffl ulty in conducting their cases and obtaining a discharge, without the assistance of legal counsel, if they use proper care and good faith. With n spect to tie second and third classes (those who owe new debts) the proceedings are the same, but if their assets are not equal to one-half of their debts, the discharge will depend upon the action of their, creditors. Any of the new creditors who file depositions establishing their debts may prevent a qiicharge from the new debts, unless they receive the fifty per cent, but the majority in number and vajue, can give an assent in writing to a discharge from all debts. If the new debts are not ones on which the bankrupt is liable as principal debtor, they will be discharged the same as if they were old debts. If no depositions proving new debts an filed at the time of the hearing of the bankrupt’s application for a discharger he will be discharged from all debts without regard to their being old or new. If depositions proving new debts are lied on or before 6uch .hearing, and they are not security debts, and the assets do not pav 80 per cent, and no written con sent of the majority in numbers and value of such creditors is filed, and it appears

that the bankrupt has made a lair aurren der, he can take a discharge from the old debts, but not from the new ones. Almost any business man of fair ability can conduct his own esse, if an ordinary one, if he will obtain a copy of the bankrupt act. containing the rules and forms, aud examine it carefully.— Krchange.