Brookheim v. Greenbaum

Citations

• 225 F. 635
• 1912 U.S. Dist. LEXIS 1856

Syllabus

<p>1. Bankruptcy <S=»303—Voidable Preference—Knowledge of Insolvency by Creditor.</p> <p>Where notes paid by a bankrupt within four months prior to his bankruptcy were then more than a year overdue, during which time he had claimed his inability to pay oh the ground of poor business, slow collections, and that he was “broke,” and paid at last only on insistent demands, lmt during all such time continued his business, which was that of a retail dealer in meats, and of considerable volume, as usual, more than the mere fact that he was then insolvent is necessary to charge the creditors with having reasonable cause to believe Mm insolvent, and that the payments constituted preferences.</p> <p>LKd. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 458-462; Dee. Dig. <S=»303.]</p> <p>2. Bankruptcy <3=»166—Voidable Preference—Knowledge of Insolvency by Creditor.</p> <p>Something more than suspicion is necessary to put a creditor on inquiry as to the solvency of his debtor, and to charge him with reasonable cause io believe that a payment to him will effect a preference over other creditors.</p> <p>[Ed. Not e.—For other cases, sec Bankruptcy, Cent. Dig. §§ 250-258, 255-258; Dec. Dig. <®=»166.J</p> <p>«gr^oFer other cases seo same topic & KEY-N UMBER in all Key-Nmnbered Digests & Indexes</p>