Protection and
detention of
bankrupts.
641

Exemption

from arrest.

Detention for purposes of

meeting of his creditors, and at such other times as the court shall order, submit to an examination concerning the conducting of his business, the cause of his bankruptcy, his dealings with his creditors and other persons, the amount, kind, and whereabouts of his property, and, in addition, all matters which may affect the administration and settlement of his estate; but no testimony given by him shall be offered in evidence against him in any criminal proceeding.

Provided, however, That he shall not be required to attend a meeting of his creditors, or at or for an examination at a place more than one hundred and fifty miles distant from his home or principal place of business, or to examine claims except when presented to him, unless ordered by the court, or a judge thereof, for cause shown, and the bankrupt shall be paid his actual expenses from the estate when examined or required to attend at any place other than the city, town, or village of his residence. § 8. DEATH OR INSANITY OF BANKRUPTS.- a The death or insanity of a bankrupt shall not abate the proceedings, but the same shall be conducted and concluded in the same manner, so far as possible, as though he had not died or become insane: Provided, That in case of death the widow and children shall be entitled to all rights of dower and allowance fixed by the laws of the State of the bankrupt's residence.

a A

§ 9. PROTECTION AND DETENTION OF BANKRUPTS.bankrupt shall be exempt from arrest upon civil process except in the following cases: (1) When issued from a court of bankruptcy for contempt or disobedience of its lawful orders; (2) when issued from a State court having jurisdiction, and served within such State, upon a debt or claim from which his discharge in bankruptcy would not be a release, and in such case he shall be exempt from such arrest when in attendance upon a court of bankruptcy or engaged in the performance of a duty imposed by this Act.

b The judge may, at any time after the filing of a petition. examination. by or against a person, and before the expiration of one month after the qualification of the trustee, upon satisfactory proof by the affidavits of at least two persons that such bankrupt is about to leave the district in which he resides or has his principal place of business to avoid examination, and that his departure will defeat the proceedings in bankruptcy, issue a warrant to the marshal, directing him to bring such bankrupt forthMay be kept in with before the court for examination. If upon hearing the evidence of the parties it shall appear to the court or a judge. thereof that the allegations are true and that it is necessary, he shall order such marshal to keep such bankrupt in custody not exceeding ten days, but not imprison him, until he shall be examined and released or give bail conditioned for his appearance for examination, from time to time, not exceeding in all

custody ten

days, etc.

ten days, as required by the court, and for his obedience to all lawful orders made in reference thereto.

845

§ 10. EXTRADITION OF BANKRUPTS.— a Whenever a warrant Extradition of for the apprehension of a bankrupt shall have been issued, and bankrupts. he shall have been found within the jurisdiction of a court other than the one issuing the warrant, he may be extradited in the same manner in which persons under indictment are now extradited from one district within which a district court has jurisdiction to another.

§ 11. SUITS BY AND AGAINST BANKRUPTS.

adjudication.

a A suit which Suits by and against bankis founded upon a claim from which a discharge would be a rupts. release, and which is pending against a person at the time of the filing of a petition against him, shall be stayed until after-stay until an adjudication or the dismissal of the petition; if such person is adjudged a bankrupt, such action may be further stayed until further stay twelve months after the date of such adjudication, or, if within that time such person applies for a discharge, then until the question of such discharge is determined.

b The court may order the trustee to enter his appearance and -appearance defend any pending suit against the bankrupt.

of trustee. 630

prior to adju

A trustee may, with the approval of the court, be permitted -commenced to prosecute as trustee any suit commenced by the bankrupt dication. prior to the adjudication, with like force and effect as though it had been commenced by him.

bringing suits

d Suits shall not be brought by or against a trustee of a bank- Time for rupt estate subsequent to two years after the estate has been against trus closed.

tees.

608

-when may

§ 12. COMPOSITIONS, WHEN CONFIRMED.- a A bankrupt may Compositions. offer terms of composition to his creditors after, but not before, he has been examined in open court or at a meeting of his cred- be offered. itors and filed in court the schedule of his property and list of his creditors, required to be filed by bankrupts.

for confirm

b An application for the confirmation of a composition may application be filed in the court of bankruptcy after, but not before, it has ing. been accepted in writing by a majority in number of all cred- 608 itors whose claims have been allowed, which number must represent a majority in amount of such claims, and the considera-. tion to be paid by the bankrupt to his creditors, and the money necessary to pay all debts which have priority and the cost of the proceedings, have been deposited in such place as shall be designated by and subject to the order of the judge.

-date, etc., for

c A date and place, with reference to the convenience of the parties in interest, shall be fixed for the hearing upon each ap- hearing. plication for the confirmation of a composition, and such objections as may be made to its confirmation.

confirmance.

d The judge shall confirm a composition if satisfied that (1) -conditions of it is for the best interests of the creditors; (2) the bankrupt has not been guilty of any of the acts or failed to perform any of

-distribution

of considera

tion. 610

-may be set aside.

-upon prac tice of fraud.

Discharges.

for.

645

the duties which would be a bar to his discharge; and (3) the offer and its acceptance are in good faith and have not been made or procured except as herein provided, or by any means, promises, or acts herein forbidden.

e Upon the confirmation of a composition, the consideration shall be distributed as the judge shall direct, and the case dismissed. Whenever a composition is not confirmed, the estate shall be administered in bankruptcy as herein provided.

§ 13. COMPOSITIONS, WHEN SET ASIDE.- a The judge may, upon the application of parties in interest filed at any time within six months after a composition has been confirmed, set the same aside and reinstate the case if it shall be made to appear upon a trial that fraud was practiced in the procuring of such composition, and that the knowledge thereof has come to the petitioners since the confirmation of such composition.

§ 14. DISCHARGES, WHEN GRANTED.-a Any person may, after the expiration of one month and within the next twelve -application months subsequent to being adjudged a bankrupt, file an application for a discharge in the court of bankruptcy in which the proceedings are pending; if it shall be made to appear to the judge that the bankrupt was unavoidably prevented from filing it within such time, it may be filed within but not after the expiration of the next six months.

-hearing of application.

b The judge shall hear the application for a discharge, and 647, 651, 685 such proofs and pleas as may be made in opposition thereto by parties in interest, at such time as will give parties in interest a reasonable opportunity to be fully heard, and investigate the merits of the application and discharge the applicant unless he has (1) committed an offense punishable by imprisonment as herein provided; or (2) with fraudulent intent to conceal his true financial condition and in contemplation of bankruptcy, destroyed, concealed, or failed to keep books of account or records from which his true condition might be ascertained.

Confirmation discharges from debts.

Discharges,

when revoked. 730

Co-debtors'

c The confirmation of a composition shall discharge the bankrupt from his debts, other than those agreed to be paid by the terms of the composition and those not affected by a discharge. § 15. DISCHARGES, WHEN REVOKED.- a The judge may, upon the application of the parties in interest who have not been guilty of undue laches, filed at any time within one year after a discharge shall have been granted, revoke it upon a trial if it shall be made to appear that it was obtained through the fraud of the bankrupt, and that the knowledge of the fraud has come to the petitioners since the granting of the discharge, and that the actual facts did not warrant the discharge.

§ 16. CO-DEBTORS OF BANKRUPTS.- a The liability of a person who is a co-debtor with, or guarantor or in any manner a discharge, etc. surety for, a bankrupt shall not be altered by the discharge of

liability not affected by bankrupt's

696

such bankrupt.

affected by a

State

689

fraud actions,

§ 17. DEBTS NOT AFFECTED BY A DISCHARGE.-a A discharge Debts not in bankruptcy shall release a bankrupt from all of his provable discharge. debts, except such as (1) are due as a tax levied by the United U. S. and States, the State, county, district, or municipality in which sute taxes. he resides; (2) are judgments in actions for frauds, or obtaining judgments in property by false pretenses or false representations, or for will- etc. ful and malicious injuries to the person or property of another; (3) have not been duly scheduled in time for proof and allow--claims not ance, with the name of the creditor if known to the bankrupt, 890 unless such creditor had notice or actual knowledge of the proceedings in bankruptcy; or (4) were created by his fraud, embez--created by zlement, misappropriation, or defalcation while acting as an officer or in any fiduciary capacity.

CHAPTER IV.

COURTS AND PROCEDURE THEREIN.

scheduled, etc.

fraud, etc.

Courts and procedure. 292

voluntary

18. PROCESS, PLEADINGS, AND ADJUDICATIONS.- a Upon Service of the filing of a petition for involuntary bankruptcy, service petition, inthereof, with a writ of subpoena, shall be made upon the person bankruptcy. therein named as defendant in the same manner that service of such process is now had upon the commencement of a suit in equity in the courts of the United States, except that it shall be returnable within fifteen days, unless the judge shall for -returnable in cause fix a longer time; but in case personal service can not be made, then notice shall be given by publication in the same manner and for the same time as provided by law for notice by pub--by publicalication in suits in equity in courts of the United States.

15 days.

tion.

within 10 days.

b The bankrupt, or any creditor, may appear and plead to Pleading the petition within ten days after the return day, or within such further time as the court may allow.

c All pleadings setting up matters of fact shall be verified-verification. under oath.

mine issues

d If the bankrupt, or any of his creditors, shall appear, within Court to deterthe time limited, and controvert the facts alleged in the peti- when facts tion, the judge shall determine, as soon as may be, the issues controverted. presented by the pleadings, without the intervention of a jury, except in cases where a jury trial is given by this Act, and makes [sic] the adjudication or dismiss the petition.

filed.

e If on the last day within which pleadings may be filed none Decision where are filed by the bankrupt or any of his creditors, the judge shall pleadings not on the next day, if present, or as soon thereafter as practicable, 296 make the adjudication or dismiss the petition.

absent, case to referee.

f If the judge is absent from the district, or the division of If judge the district in which the petition is pending, on the next day be referred to after the last day on which pleadings may be filed, and none 202

Hearing on filling voluntary petition.

-absence of judge.

Jury trials. 294

-person

involuntary entitled.

have been filed by the bankrupt or any of his creditors, the clerk shall forthwith refer the case to the referee.

g Upon the filing of a voluntary petition the judge shall hear the petition and make the adjudication or dismiss the petition. If the judge is absent from the district, or the division of the district in which the petition is filed at the time of the filing, the clerk shall forthwith refer the case to the referee.

§ 19. JURY TRIALS.- a A person against whom an involuntary petition has been filed shall be entitled to have a trial by against whom jury, in respect to the question of his insolvency, except as petition filed, herein otherwise provided, and any act of bankruptcy alleged in such petition to have been committed, upon filing a written application therefor at or before the time within which an -right waived. answer may be filed. If such application is not filed within such time, a trial by jury shall be deemed to have been waived. Attendance of b If a jury is not in attendance upon the court, one may be specially summoned for the trial, or the case may be postponed, or, if the case is pending in one of the district courts within the jurisdiction of a circuit court of the United States, it may be certified for trial to the circuit court sitting at the same place, or by consent of parties when sitting at any other place in the same district, if such circuit court has or is to have a jury first in attendance.

jury, etc.

Laws as to jury trials applicable.

Oaths, by whom administered.

Affirmations. 295, 845

Evidence.

attendance of

200

c The right to submit matters in controversy, or an alleged offense under this Act, to a jury shall be determined and enjoyed, except as provided by this Act, according to the United States laws now in force or such as may be hereafter enacted in relation to trials by jury.

§ 20. OATHS, AFFIRMATIONS.- a Oaths required by this Act, except upon hearings in court, may be administered by (1) referees; (2) officers authorized to administer oaths in proceedings before the courts of the United States, or under the laws of the State where the same are to be taken; and (3) diplomatic or consular officers of the United States in any foreign country. b Any person conscientiously opposed to taking an oath may, in lieu thereof, affirm. Any person who shall affirm falsely shall be punished as for the making of a false oath.

§ 21. EVIDENCE.— a A court of bankruptcy may, upon appliCompulsory cation of any officer, bankrupt, or creditor, by order require witnesses. any designated person, including the bankrupt, who is a competent witness under the laws of the State in which the prɔceedings are pending, to appear in court or before a referee or the judge of any State court, to be examined concerning the acts, conduct, or property of a bankrupt whose estate is in process of administration under this Act.

b The right to take depositions in proceedings under this Act shall be determined and enjoyed according to the United States