Page:Black's Law Dictionary (Second Edition).djvu/126

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BANKRUPT

BANKRUPT. A person who has com- mitted an act of bankruptcy; one who has done some act or suffered some act to be done in consequence of which, under the laws of his country, he is liable to be proceeded against by his creditors for the seizure and distribution among them of his entire prop- erty. Ashby v. Steere, 2 Woodb. «S: M. 347. 2 i"ed. Gas. 15; In re Scott, 21 Fed. 0115. 808: U. S. v. Pusey, 27 Fed. Cos. 632.

A trader who secretes himself or does certain other acts tending to defraud his cred- itors. 2 Bl. Comm. 471.

In a looser sense, an insolvent person: a broken-up or ruined trader. Everett V. Stone, 3 Story. 453, Fed. Cas. No. 4,577

A person who, by the formal decree of a court, has been declared subject to be proceeded against under the bankruptcy laws, or entitled, on his voluntary application, to take the benefit of such laws.

{{anchor+|.|BANKRJUPT LAW. A law relating to bankrupts and the procedure against them in the courts. A law providing a remedy for the creditors of a bankrupt, and for the re- iief and restitution of the bankrupt himself.

A bankrupt law is distinguished from the ordinary law between debtor and creditor, as in- ioirlng these three general principles: (1) A summary and immediate seizure of all the debt- or-'s property; (2) a distribution of it among the creditors in general. instead of merely applying

1 portion of it to the payment of the individual

Luru[ilainan't; and (R) the discharge of the debt- or from future liability for the debts than ex- isting.

The leading distinction between a bankrupt law and an insolvent law, in the proper tech- nicai sense of the words, consists in the char- acter of the persons upon whom it is designed to operots.——thc former contemplating as its ob- jects bnnkrupts only. that is, traders of a cer- Liiu description; the latter. insolvents in general, or persons unable to pay their debts. This has led to a marked separation between the two systems. in principle rind in practice, which in England has alwr1_vs been carefully maintained, although in the United States it has of late liccn effectually disregarded. In further illustration of this distinction. it may be observed that a bankrupt law. in its proper sense. is a remt-dy intended primarily for the benefit of creditors; it is set in motion at their instance and operates upon the debtor against his will, (ui. irlvituvm-.) although in its result it effectuzrlly discharges him from his debts. An insolvent inw. on the other hand. is chiefly intended for the benefit of the debtor, and is set in motion at his instance, though less effective as a dischartre in its hnai result. Sturces v. Crou-inshieid, 4 Wlicat. 194. 4 L Ed. 52!): Vanuxen v. Hazle- iiursts, 4 N. J. I/iw, 192, 7 Am. Dec. 58-; Adams v. Storey. 1 Paine. 70. i Fed. Cns. 142; Kunzler v. Koliuus. 5 Hill (. 317.

The only substantial difference between a strictly bankrupt law and an insolvent law lies in the circumstance that the former affords re- licf upon the application uf the creditor, and the latter upon the application of the debtor. In the general charsotcr of the remedy, there is no difference, however much the modes by which the remedy may be administered may vary. Martin v. Berry, 37 Cal. 222

{{anchor+|.|BANKRUPTCY. 1. The state or condition of one who is a bankrupt; amenabllity

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{{anchor+|.|BA NLEUCA

to the bankrupt laws; the condition of one who has committed an act of bankruptcy, and is liable to be proceeded against by his cred- itors therefor, or of. one whose circumstances are such that he is entitled, on his voluntary application, to take the benefit of the bank- rupt laws. The term is used in a looser sense as synonymous with “insoivency."—- inability to pay one’s debts; the stopping and breaking up of business because the trader is broken down. insolvent, ruined. Phipps v. Harding, 70 Fed. 468, 17 C. C. A. 203, 30 L B. A. 513; Arnold v. Maynard, 2 Story. 354. Fed. Cas. No. 561; Bernh.1rdt v. Curtis. 109 La. 171, 33 South. 125, 94 Am. St. Rep. 445.

2. The term denotes the proceedings taken under the bankrupt law, against a person (or firm or company) to have him adjudged a bankrupt, and to have his estate administered for the benefit of the creditors, and di- vided among them.

3. That branch of jurisprudence, or system of law arid practice, which is concerned with the definition and asoertsiiunient of acts of bankruptcy and the administration of bank- rupts' estates for the benefit of their cred- itors and the absolution and restitution of bankrupts.

As to the distinction between bankruptcy and insoivency, it may be said that insoiveat laws operate at the instance of an imprisoned debtor; bankrupt laws, at the instance of a creditor But the line of partition b('fWE€I] bankrupt and insolvent laws is not so distinctly marked as to define what belongs exclusively to the one and not to the other class of laws. Sturizcs v. Crown- inshicld. 4 \\ hcut. 123. 4 L. Ed. 529.

Insolvency means a simple inability to pay as debts should become payable, whereby the debtor's business would he broken up; bunk- ruptcy means the particular legal atoms. to be nsocrtnincd and declarud by a judicial decree. In re Black, 2 Ben. 196. Fed. Cas. No. 1.457.

Classification. Bankruptcy (in the sense of proceedings taken under the bankruptcy law) is either voluntary or involuntary; the former where the proceeding is initiated by the debtors own petition to be adjudged a bankrupt and have the benefit of the law (In re Murra [D. C.] 96 Fed. 600; liletsker v. Bonebrake. 158 U. S. 66. 2 Sup. Ct. 351. :37 [L Ed. 65-1), the latter where be is forced into bankruptcy on the pelition of a sufficient number of his creditors.

—Act of bankruptcy, see Ac1‘.—Adjwd.ioution of bankruptcy. The judgment or decree of a court having jurisdiction. that a person against whom a petition in bankruptcy has been filed, or who has filed his voluntary petition, be ordered and adjudged to be a bankr'upt.—Bnuk- ruptey courts. Courts for the administration of the bankrupt laws. The present English bankruptcy courts are the London bankruptcy court, the court of appeal, and the iocal bank- ruptcy courts created by the bankruptcy act. 1S1i9.—Baukr-uptcy proceedings. The term inciudes all roceedings in a federal court having jurisdiction in bankruptcy, founded on H. petition in bankruptcy and either directly or collaterally involved in the adjudication and discharge of the bankrupt and the eoliection and administration of his estate. Kidder v. Horro- bin, 72 N. Y. 167.

BANLEUCA. An old law term. signifying a space or tract of country around I