In re Baird

Citations

• 126 F. 845
• 1904 U.S. Dist. LEXIS 437

Syllabus

<p>1. Bankruptcy — Attachment Liens.</p> <p>More than four months prior to the filing of the petition in bankruptcy, one subsequently adjudicated an involuntary bankrupt, by written contract which was never recorded, sold and agreed to convey real estate. Less than four months prior to the filing of the petition creditors of the vendor levied attachments on the said real estate. After the levy of said attachments, and before the filing of the said petition, the contract of sale was performed by the execution of a deed conveying said real estate, which deed was forthwith recorded. .Held, that the trustee in bankruptcy of the vendor, and not the attaching creditors, are by Bankr. Act July 1, 1898, c. 541, § 67f, 30 Stat. 565 [U. S. Comp. St. 1901, p. 3450], given the benefit of the attachment liens.</p> <p>2. Same — Subrogation—Rights of Trustee.</p> <p>Bankr. Act July 1, 1898, c. 541, § 70a, 30 Stat. 565 [U. S. Comp. St. 1901, p. 3451], is an enumeration of those properties the title to which passes to the trustee in bankruptcy by operation of law. Therefore the right of subrogation given the trustee by order of court under section 67f (30 Stat. 565 [U. S. Comp. St. 1901, p. 3450]) is properly not mentioned in section 70a.</p> <p>8. Same.</p> <p>The duty of the court to either annul, or to subrogate the trusteee to the benefit of, liens obtained by legal proceedings against one then insolvent, commenced less than four months before the filing of the petition in bankruptcy, is not'confined to liens which create a preference.</p>