204 



CONGRESS. (UNIFORM SYSTEM OF BANKRUPTCY.) 



a sufficient number have joined in such petition, or 

 if prior to or during such hearing a sufficient num- 

 ber shall join therein, the case may be proceeded 

 with, but otherwise it shall be dismissed. 



e. In computing the number of creditors of a 

 bankrupt for the purpose of determining how many 

 creditors must join in the petition, such creditor! 

 as were employed by him at the time of the filing of 

 the petition or are related to him by consanguinity 

 or affinity within the third degree. :is determined 

 by the common law, and have not joined in the pe- 

 tition, shall not be counted. 



"/. Creditors other than original petitioners may 

 at any time enter their appearance and join in 

 the petition, or file an answer and be heard in op- 

 p:.siii<.n to the prayer of the petition. 



u o. A voluntary or involuntary petition shall not 

 be dismissed by the petitioner or petitioners or for 

 want of prosecution or by consent of parties until 

 after notice to the creditors. 



-SKC. 60. Preferred creditors. a. A person shall 

 be deemed to have given a preference if, being in- 

 solvent, he has procured or suffered a judgment to 

 be entered against himself in favor of any person. 

 or made a transfer of any of his property, and the 

 effect of the enforcement of such judgment or 

 transfer will be to enable any one of his creditors 

 to obtain a greater percentage of his debt than any 

 other of such creditors of the same class. 



"6. If a bankrupt shall have given a preference 

 within four months before the filing of a petition, or 

 after the filing of the petition and before the ad- 

 judication, and the person receiving it, or to be 

 benefited thereby, or his agent acting therein, shall 

 have had reasonable cause to believe that it was in- 

 tended thereby to give a preference, it shall be void- 

 able by the trustee, and he may recover the property 

 or its value from such person. 



"c. If a creditor has been preferred, and after- 

 ward in good faith gives the debtor further credit 

 without security of any kind for property which 

 becomes a part of the debtor's estates, the amount 

 of such new credit remaining unpaid at the time of 

 the adjudication in bankruptcy may be set off 

 against the amount which would otherwise be re- 

 coverable from him. 



"rf. If a debtor shall, directly or indirectly, in 

 contemplation of the filing of a petition by or 

 against him, pay money or transfer property to an 

 attorney and counselor at law, solicitor in equity, or 

 proctor in admiralty for services to be rendered, the 

 transaction shall be re-examined by the court on pe- 

 tition of the trustee or any creditor and shall only 

 be held valid to the extent of a reasonable amount 

 to be determined by the court, and the excess may 

 be recovered by the trustee for the benefit of the 

 estate. 



" CHAPTER VII. ESTATES. 



" SEC. 61. De{>ositories for money. a. Courts of 

 bankruptcy shall designate, by order, banking in- 

 stitutions as depositories for the money of bankrupt 

 estates, as convenient as may be to the residences of 

 trustees, and shall require bonds to the United 

 States, subject to their approval, to be given by 

 such banking institutions, and may from time to 

 time, as occasion may require, by like order in- 

 crease the number of depositories or the amount of 

 any bond or change such depositories. 



"Si.<-. 62. Expenses of administering estates. a. 

 The actual and necessary expenses incurred by offi- 

 cers in the administration of estates shall, except 

 where other provisions arc made for their payment, 

 be reported in detail, under oath, and examined 

 and approved or disapproved by the court. If ap- 

 proved, they shall U- paid or allowed out of the es- 

 tates in which they were incurred. 



" SEC. 63. Debts which may be proved. a. Debts 

 of the bankrupt may be proved and allowed against 

 his estate which are'(l)a fixed liability, as evidenced 

 by a judgment or an instrument in writing, abso- 

 lutely owing at the time of the filing of the petition 

 against him, whether then payable or not, with any 

 interest thereon which would have been recoverable 

 at that date or with a rebate of interest upon such 

 ;is were not then payable and did not bear interest; 

 (2) due as costs taxable against an involuntary bank- 

 rupt who who was at the time of the filing of the 

 petition against him plaintiff in a cause of action 

 which would pass to the trustee and which the 

 trustee declines to prosecute after notice; (3) found- 

 ed upon a clai:n for taxable costs incurred in good 

 faith by a creditor before the filing of the petition 

 in an action to recover a provable debt ; (4) founded 

 upon an open account, or upon a contract express or 

 implied ; and (5) founded upon provable debts re- 

 duced to judgments after the filing of the petition 

 and before the consideration of the bankrupt's ap- 

 plication for a discharge, less costs incurred and in- 

 terests accrued after the filing of the petition and 

 up to the time of the entry of such judgments. 



"6. Unliquidated claims against the bankrupt 

 may, pursuant to application to the court, be liqui- 

 dated in such manner as it shall direct, and may 

 thereafter be proved and allowed against his estate. 



" SEC. 64. Debts which have priority. a. The 

 court shall order the trustee to pay all taxes legally 

 clue and owing by the bankrupt to the United 

 States, State, county, district, or municipality in 

 advance of the payment of dividends to creditors, 

 and upon filing the receipts of the proper public 

 officers for such payment he shall be credited with 

 the amount thereof, and in case any question arises 

 as to the amount or legality of any such tax the 

 same shall be heard and determined by the court. 



" b. The debts to have priority, except as herein 

 provided, and to be paid in full out of bankrupt es- 

 tates, and the order of payment shall be (1) the 

 actual and necessary cost of preserving the estate 

 subsequent to filing the petition ; (2) the filing fees 

 paid by creditors in involuntary cases ; (3) the cost 

 of administration, including the fees and mileage 

 payable to witnesses as now or hereafter provided 

 by the laws of the United States, and one rea- 

 sonable attorney's fee, for the professional serv- 

 ices actually rendered, irrespective of the num- 

 ber of attorneys employed to the petitioning 

 creditors in involuntary cases, to the bankrupt 

 in involuntary cases while performing the duties 

 herein prescribed, and to the bankrupt in voluntary 

 cases, as the court may allow; (4) wages due t< 

 workmen, clerks, or servants which have been 

 earned within three months before the date of the 

 commencement of proceedings, not to exceed $300 

 to each claimant; and (5) debts owing to any per- 

 son who by the laws of the State or the United 

 States is entitled to priority. 



"c. In the event of the confirmation of a compo- 

 sition being set aside, or a discharge revoked, the 

 property acquired by the bankrupt in addition to 

 his estate at the time the composition was confirmed 

 or the adjudication was made shall be applied t.> 

 the payment in full of the claims of creditors for 

 property sold to him on credit, in good faith, while 

 such composition or discharge was in force, and tho 

 residue, if any, shall be applied to the payment 01! 

 the debts which were owing at the time of the ad- 

 judication. 



"SEC. 65. Declaration and payment of dividends, 

 a. Dividends of an equal per cent, shall be declared 

 and paid on all allowed claims, except such as havo 

 priority or are secured. 



"5. The first dividend shall be declared within 

 thirty days after the adjudication if the money of 



