Field v. Geohegan

Citations

• 125 Ill. 68
• 16 N.E. 912

Syllabus

<p>1. Insolvent debtors—preferring creditors—whether allowable. The act relating to a general assignment for the benefit of creditors, making preferences in favor of particular creditors void, has no application to the case of a debtor who retains the dominion over his property. Such debtor may, if he .act in good faith, sell his property, mortgage or pledge it to secure a bona fide debt, or create a lien upon it by confessing judgment in favor of a bona fide creditor.</p> <p>2. In this case, the debtor firm, more than thirty days before making a general assignment for creditors, gave to certain creditors notes, with warrants of attorney for the confession of judgments thereon. The judgments were not, however, entered until the day of the assignment. Executions were placed in the officer’s hands just before the execution and recording of the assignment. There was no question made as to the validity and sufficiency of the consideration of the judgment notes, and the debtors, at the time of giving such notes, were not contemplating making an assignment: Meld, that the lien of the executions issued upon the judgments was prior to that of the assignee or the other general creditors.</p>