Blair v. Carter's Adm'r

Citations

• 78 Va. 621
• 1884 Va. LEXIS 35

Syllabus

<p>x. Bankruptcy—Provable debts.—Under ji 5106, U. S. R. Statutes, no suit on provable debt can be prosecuted to judgment against bankrupt until question of his discharge is determined. By leave of bankrupt court, suit may proceed to ascertain amount which ought to be proved therein.</p> <p>2. Idem—Idem—Judgments—Discharge.—By maturing pre-existing provable debt of bankrupt into judgment, the form and remedy are changed. The debt remains the same and provable in bankruptcy. Hence, under \\ 5119, U. S. R. Statutes, the bankrupt is released from such judgment by his discharge.</p> <p>.3. Idem—Merger.—Under the bankrupt act, the theory that the debt is merged in the judgment, has no applicability.</p> <p>4. Idem—After-acquired lands.—-Judgments matured against bankrupt after his adjudication on pre-existing provable debts, are not liens on his after-acquired lands; but bankrupt is released by his discharge from them, as well as from the debts whereon they are founded.</p> <p>5. Idem—Sales free of lien.—Bankrupt court controls property of bankrupt ; though encumbered by liens, may bring the lien-holders into court; sell the property free of liens, and distribute the proceeds according to priorities.</p> <p>■6. Idem—Case at bar.—In 1868, H L M was'adjudicated a bankrupt. His land was sold by decree of bankrupt court, free of liens, and purchased by himself, and conveyed to him by his assignees. Later, he sold it to J H M, who conveyed it in trust to secure debt to B. Under this trust, it was sold and purchased by B. In 1879, C brought creditor’s bill to subject the land in B’s hands to liens of judgments recovered against H L M, after his adjudication as bankrupt on pre-existing provable debts.</p> <p>Held :</p> <p>1. The judgments were released by H L M’s discharge, and are not liens on the land in B’s hands.</p> <p>2. B is entitled to defend his own title by defending that of his vendor, which can be done only by setting up his discharge in bankruptcy and his release f