First National Bank v. Hoffman

Citations

• 102 Kan. 465
• 171 P. 13
• 1918 Kan. LEXIS 65

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Bankruptcy — Discharge as Affecting Debts and Chattel-martgaged Property o-f Bankrupt. The maker of notes gave a chattel mortgage to secure their payment, and afterward filed a petition in bankruptcy. The holder of the notes procured their allowance as a claim against the estate of the bankrupt. All the property covered by the chattel mortgage, except certain exempt property, was sold by the trustee under an agreement between the trustee, the bankrupt, and the holder of the notes. The bankrupt was finally discharged, although the notes were not paid in full. Held, that the discharge released the bankrupt from further payment on the notes, and released all the unsold mortgaged property from the lien of the chattel mortgage.</p> <p>2. Same — -Discharge as Affecting a Co-debtor. 'A discharge in bankruptcy does not releasé a co-debtor with, or surety for, the bankrupt from liability on a debt, unless that debt has been paid.</p>