First Nat. Bank of Baltimore v. Staake

Citations

• 202 U.S. 141
• 26 S. Ct. 580
• 50 L. Ed. 967
• 1906 U.S. LEXIS 1524

Syllabus

<p>Under § 67/ of the bankruptcy law of 1S9S attachments obtained within four months of filing the petition on property which in the absence of the attachments would pass to other persons, and to which the bankrupt has only a bare legal title, may be preserved for the general benefit of the estate, and whatever the trustee realizes thereon m'ay be distributed among the body of the creditors. The lien is valid, but it loses'its preferential character in favor of the attaching creditor by the institution of the bankruptcy proceedings.</p> <p>The extent to which the bankruptcy court, shall recognize the rights obtained by creditors upon property attached .as property of the bankrupt, but which has been conveyed by unrecorded contract., and the extent to which liens obtained by prior judicial proceedings shall be recognized are wholly within the discretion of Congress.</p>