Ide v. Sayer

Citations

• 129 Ill. 230
• 21 N.E. 810

Syllabus

<p>1. Insolvent debtors—jurisdiction—transfer of property prior to an assignrnent—jurisdiction to determine its validity—in the county court or in a court °f chancery. Where a failing or insolvent debtor, a few days before making an assignment for the benefit of creditors, conveys land to a third person in payment of a debt, the county court has no jurisfiction, on petition by the assignee, to declare such conveyance fraudulent, as being made in contemplation of making the assignment, and thus give his grantee an unauthorized preference'. This can be done by proper parties only in a court of equity.</p> <p>2. Whether a conveyance of land and a transfer of a draft or check by an insolvent debtor to another was made after the debtor had decided to make an assignment, and for the purpose of preferring the prior grantee to other creditors, is a question or issue triable only in a court having general equitable jurisdiction.</p> <p>3. If an insolvent debtor, on the eve of making an assignment for ihe benefit of creditors, and after making up his mind to do so, should prefer one creditor by making a conveyance or transfer of property to him, and then assign his other property, the remedy must be sought by the creditor sought to be defrauded, by appropriate steps in a court •of equity to enforce the equality contemplated by the statute.</p> <p>4. Same—equitable jurisdiction of county courts. County courts in this State have no general chancery powers, and none are conferred by the Assignment act. They may, however, exercise both legal and equitable powers to execute and carry out the provisions of that act.</p>