Hudson v. Mercantile Nat. Bank

Citations

• 119 F. 346
• 56 C.C.A. 250
• 1902 U.S. App. LEXIS 4676

Syllabus

<p>1. Bankruptcy—Discharge—Concealment of Property.</p> <p>A bankrupt furnished the money with which two tracts of public land were acquired, one by his son and the other by a third person. After the land was patented such third person conveyed his tract also to the son at the bankrupt’s instance and without consideration. The land had previously been occupied for a number of years by the bankrupt as a part of his ranch, and he continued to occupy and use the same after-wards without accounting for rents or profits to the son, who did not reside upon the land, but had removed to Mexico even before the title was acquired. MeÚ, that either a trust resulted in favor of the bankrupt from his payment of the consideration which he could enforce, or, if the conveyance to the son was for the purpose of defrauding creditors, he held it on a secret trust for the bankrupt, and in either case it was the bankrupt’s duty to schedule the land as a part of his estate, and his failure to do so amounted to a fraudulent concealment of property from his trustee, within the meaning of Bankr. Act 1898, § 14b [U. S. Comp. St. 1901, p. 3427], which justified the court in refusing him a discharge.</p>