Greenberger v. Schwartz

Citations

• 261 Pa. 265
• 104 A. 573
• 1918 Pa. LEXIS 727

Syllabus

<p>Bankruptcy — Bankruptcy Act, Section 67f — Construction—Liens —Judgments—Void liens.</p> <p>1. An adjudication of bankruptcy ipso facto renders null and void all liens obtained through legal proceedings against the bankrupt within four months prior to the filing of the petition in bankruptcy against him. Whether the bankrupt’s estate is administered by a trustee or there is a composition by the bankrupt with his creditors, the effect of a discharge in bankruptcy is the same, if the composition is confirmed by the court.</p> <p>2. In proceedings to determine the validity of the lien of a judgment entered against a partnership and the individual members thereof, where it appeared that within four months after the judgment had been, entered, proceedings in bankruptcy were instituted against the firm and its individual members, and that they were subsequently adjudged bankrupts and filed schedules wherein they named plaintiffs as creditors, and thereafter made a composition with their creditors which was confirmed by the bankruptcy court and was carried out by the bankrupts, the lower court properly held that the judgment which had been entered was rendered void by the bankruptcy proceedings.</p>