United States Statutes at Large/Volume 2/7th Congress/2nd Session/Chapter 31
Chap. XXXI.—An Act for the relief of Insolvent Debtors within the District of Columbia.
Debtors confined in the jail of the district of Columbia may petition for relief.
In what manner.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any debtor who now is, or may hereafter be, in actual confinement in jail, in the district of Columbia, at the suit of any creditor, may apply by petition in writing, to any one of the judges of the circuit court of the district of Columbia, and offer to deliver up, for the use of his creditors, all his property, real, personal and mixed, to which he is in any manner entitled, a schedule whereof, on oath or affirmation, together with a list of his creditors, as far as he can ascertain them, shall be annexed to and exhibited with his petition;Notice to be published in the public newspapers. and thereupon the said judge shall direct notice of such application to be published in some of the public newspapers, for such time as he may think proper, which notice shall likewise require the attendance of the creditors at the courthouse of the county, in which the petitioning debtor is confined, and at such time as the said judge may appoint; and it shall be the duty of the said judge, and of the clerk, of the county, to attend at the time and place appointed; and on the appearance of the creditors, either in person or by attorney, agreeably to the notification, or on their neglect to appear, the said judge shall administer to the debtor the following oath:Oath or affirmation of an insolvent debtor. “I, A. B. do swear (or solemnly, sincerely and truly declare and affirm,) that I will deliver up, convey and transfer, for the use of my creditors, all my property that I have any title to or claim any interest in, whether in possession, remainder or reversion, and all claims, rights and credits that I have or am in any manner entitled to; and that I have not at any time given, sold, conveyed, lessened or disposed of for the use or benefit of myself, or any other person or persons, any part of my money or other property, claims, rights or credits, thereby to defraud my creditors, or any of them, or to secure the same with a view or expectation to receive any profit, benefit or advantage thereby,”Trustee appointed. and the said judge shall thereupon appoint such person, as a majority of the creditors in value, their agents or attornies then present, shall recommend, to be a trustee, for the benefit of the creditors of the petitioning debtor; or in case of non-attendance of the creditors, or of their not making a recommendation, the said justice shall name such person as he shall think proper, to be a trustee as aforesaid.
Who shall give bond and security.Sec. 2. And be it further enacted, That before the said trustee shall proceed to act, he shall give bond to the United States in such penalty and with such security as the said judge shall approve, conditioned for the faithful performance of his trust, which shall be recorded in the clerk’s office of the county in which the proceedings are had;A certified copy of the bond to be evidence.
In case of death or refusal to act, another appointed. and a certified copy thereof shall be received as evidence in any court of law in the United States; and the said bond may be sued in the name of the United States, for the use of any person or persons who may conceive him or themselves aggrieved by the negligence or misconduct of the trustee. And in case of the death or refusal to act of any trustee, the said judge may appoint another in his place, who shall give bond in manner as aforesaid.
The petitioning debtor discharged on executing a deed or deeds to the trustee, and delivering his property with his books and papers.Sec. 3. And be it further enacted, That upon the petitioning debtor’s executing a deed or deeds to the said trustee, conveying all his property, real, personal and mixed, and all his claims, rights and credits, agreeably to the oath or affirmation of the said debtor, and on delivering all his said property which he shall have in his possession, together with his books, papers and evidences of debts of every kind, to the said trustee, and the said trustee’s certifying the same to the said judge in writing, it shall be lawful for the said judge to make an order to the marshal, jailer or keeper of the prison, in which said debtor is then confined, commanding that the said debtor shall be thenceforth discharged from his imprisonment; and he shall be immediately discharged, and the said order shall be a sufficient warrant therefor:Proviso, that no person who has been guilty of a breach of the laws and imprisoned therefor shall be discharged from such imprisonment. Provided, that no person who has been guilty of a breach of the laws, and who has been imprisoned for or on account of the same, shall be discharged from imprisonment: And provided likewise, that any property which the debtor may afterwards require, (except the necessary wearing apparel and bedding for his family, and his tools, if a mechanic or manufacturer,) shall be liable to the payment of his debts, any thing herein to the contrary notwithstanding.
Wearing apparel, bedding and tools of trade allowed.Sec. 4. And be it further enacted, That the said judge may allow such petitioning debtor and his family, to retain their necessary wearing apparel and bedding, and if the said debtor be a mechanic or manufacturer, he may likewise retain the tools of the trade.
Property of the debtor how sold.Sec. 5. And be it further enacted, That the said judge may direct the trustee to sell and convey the property of the petitioning debtor, at such time, and on such terms and conditions as he shall deem most to the advantage of the creditors, and the product thereof,Product thereof how divided.
What process only can take effect. after satisfying all incumbrances and liens, shall be divided among the creditors in proportion to their respective claims: and no process against the real or personal property of the debtor shall have any effect or operation, except process of execution, and attachments in nature of executions, which shall have been put into the hands of the marshal antecedent to the application.
Trustee may sue in his own name.Sec. 6. And be it further enacted, That every trustee may sue for, in his own name, any property or chose in action assigned to him by virtue of this act.
Fraud or deceit towards creditors.Sec. 7. And be it further enacted, That if any creditor, at any time within two years after the application of such debtor, shall allege in writing, to the circuit court of the district of Columbia, or at any other court of the United States, within whose jurisdiction such debtor may be found, that such debtor had at the time of his application as aforesaid, directly or indirectly conveyed, lessened or disposed of any part of his property, rights or credits, with intent to defraud his creditors, or had at any one time within twelve months next preceding said application, lost by gaming more than three hundred dollars,Debtor gaming to a certain extent. or had assigned or conveyed any part of his property, rights or credits, with intent to give a preference to any creditor or creditors, or any surety, the said court shall thereupon order notice of such allegation to be given in writing to the debtor, and upon his appearance before them, or on his neglect to appear, after proof that notice has been served,To be precluded from the benefit of this act. the said court shall, within a reasonable time, examine the debtor or any other person, upon interrogatories on oath, touching the substance of the said allegations, or may direct an issue or issues to be tried in a summary way, without the form of an action, to determine the truth of the same; and if upon the answer to the said interrogatories, or upon the trial of the issue or issues, such debtor shall be found guilty of any fraud or deceit towards his creditors, or of having lost by gaming as aforesaid, or of having given any preference as aforesaid, he shall be precluded from any benefit under this act;False testimony or corrupt swearing or affirming. and in case such debtor, or any other, testifying either for or against him, shall at any time thereafter be convicted of falsely, wilfully and corruptly swearing or affirming to any matter or thing in virtue of this act, he shall suffer as in the case of wilful perjury, and upon such conviction of the debtor,How punished. or any other person testifying for him, he shall be for ever precluded from any benefit under this act.
Trustee allowed a commission.Sec. 8. And be it further enacted, That every judge charged with the execution of this act, may, in the respective cases which may be brought before him, allow the trustee a commission not exceeding eight per centum for his trouble, on the amount of debts paid by him; and if any complaint shall be made to the said judge of the misconduct of any trustee by any creditor, or by the debtor,Trustee may be superseded for misconduct. the said judge may call such trustee before them, and inquire into the cause of complaint, and may make such rules and orders as he may think proper for the accomplishment of the object of the trust, and may in his discretion remove such trustee and appoint another in his place.
Exhibition of claims to the trustee.
Contested claims how settled.Sec. 9. And be it further enacted, That the acting judge may by order, limit and appoint a time for creditors to bring in and exhibit their claims to the trustee, and if the said trustee should think proper to contest any claim exhibited against the debtor, it shall be his duty to report the same to the judge having cognizance of the case, who may examine the creditor and debtor upon oath respecting the same, and may submit to a jury, such issues as shall be proper to settle the points in contest, or may appoint two indifferent persons to act as arbitrators between the parties, with a power, if they differ, to choose an umpire, and a decision thus made shall be final between the parties; and the said justice may order any part of the debtor’s estate to be set apart,Provision for contested claims.
Collusion forfeits the debt. and retained for the eventual satisfaction of any contested claim, or to be brought again into distribution; and if any creditor to whom a debt is due, shall conclude with a debtor to gain an undue preference, or for the concealment of any part of the debtor’s estate or effects, or shall contrive or concert any acknowledgment of the debtor by parol, or in writing, to give false colour to his claim, such creditor shall lose the whole of his debt.
Debtor arrested after being relieved, how to be discharged, and in what cases.Sec. 10. And be it [further] enacted, That if any debtor who shall have been relieved under this act, shall be arrested or imprisoned on any process sued out on any judgment or decree, obtained against him for any debt, damages, or costs contracted, owing or growing due before his discharge as aforesaid, the court before whom such process shall be returned or returnable, or any judge thereof, shall discharge such debtor; and if any such debtor shall be arrested or imprisoned on any process for the recovery of any debt, damages, or costs contracted, owing or growing due before his discharge as aforesaid, the court before whom such process shall be returned, or returnable, or any judge thereof, shall discharge such debtor out of custody, on his common appearance being entered, without special bail: Provided, and it is the true intent and meaning of this act, that no discharge whatever under this act shall be construed or taken as a discharge of any other person from any debt, contract or engagement of any kind or nature soever.
The judge shall lodge with the clerk of the county theSec. 11. And be it further enacted, That when the acting judge shall, as above prescribed, give to the marshal an order for the discharge of a debtor, it shall be the duty of the said judge to lodge with the clerk of the county in which the discharge shall take place, a certificate in the following words, to wit.certificate of discharge. “I do hereby certify, that I have this day ordered the marshal of the district of Columbia, to discharge from imprisonment A. B. an insolvent debtor, agreeably to the act of the Congress of the United States, intituled ‘An act for the relief of insolvent debtors within the district of Columbia,’”Copy of the recorded certificate evidence in law. which said certificate shall be recorded by the said clerk, and a copy thereof under seal, shall be received in evidence, in any court of law in the United States.
Unfinished acts of a judge how completed.Sec. 12. And be it further enacted, That if any judge before whom the operation of this act in any particular case shall have been commenced, shall die, resign his office or become disqualified, the proceedings may be completed by any other judge of the said court, in the same manner as if they had been originally commenced before him.
What papers are to be recorded by the county clerk.
Copies of the record legal evidence.
Clerk’s fees, how payable.Sec. 13. And be it further enacted, That the application of the debtor, the appointment of a trustee, the deed from the debtor to the trustee, the several claims exhibited to the trustee, and the amount of sales of the debtor’s property shall be transmitted to and recorded by the clerk of the county in which the debtor was confined at the time of his application; copies of which, under seal, shall be received as evidence in any court of law in the United States, and the clerk shall receive the same fees as are fixed by law for the like services in other cases, to be paid by the trustee out of the first proceeds of the debtor’s estate that may come into his hands.
Limitation to the effect of this discharge.Sec. 14. And be it further enacted, That no discharge of an insolvent debtor under this act shall have greater effect in any particular state than if such debtor had been discharged under the insolvent debtor’s law of any other state.
Circuit court shall determine the allowance of prisoners in civil suits.
Who shall not be detained unless provided for—
With prison fees.
Proviso.Sec. 15. And be it further enacted, That the circuit court of the district of Columbia shall, by a general order to be entered on the records of the said court, fix the daily allowance for the support and maintenance of prisoners in execution for debt or damages in civil suits, which allowance the said court may, by a like general order, increase or diminish from time to time, as circumstances may require. And no person taken in execution for debt or damages in a civil suit, shall be detained in prison therefor, unless the creditor, his agent or attorney, shall, after demand thereof by the marshal, pay or give such security as he may require, to pay such daily allowance, and the prison fees: Provided, that a release from prison for want of such payment or security, shall not discharge the debt; but the body of the debtor shall never be again taken in execution therefor.
Prison bounds in the district.Sec. 16. And be it further enacted, That the said court may cause to be marked and laid out, reasonable bounds of the prisons in the said district, to be recorded in the same court; and from time to time, may renew, enlarge, or diminish the same.Liberty of the prisoners under approved security. And every prisoner not committed for treason or felony, giving such security to keep within the said bounds, as any judge of the said court shall approve, shall have liberty to walk therein, out of the prison, for the preservation of his health; and keeping continually within the said bounds, shall be adjudged in law a true prisoner.
Public debtors and non-residents a year, excluded the provisions of this act.Sec. 17. And be it further enacted, That the provisions of this act shall not be construed to extend to any debtor who is or shall be imprisoned at the suit of the United States, nor to alter, lessen, or impair the right of the United States, to be first satisfied out of the estates of persons indebted to them; nor to any debtor who has not resided in the district of Columbia one year next preceding his said application.
Approved, March 3, 1803.