In re Belknap

Citations

• 129 F. 646
• 1904 U.S. Dist. LEXIS 309

Syllabus

<p>1. Acts of Bankruptct — Preference—Judicial Proceedings.</p> <p>Where a landlord’s levy on the goods of his tenant under a distress warrant did not operate as a preference, as defined by Bankr. Act July 1, 1898, c. 541, § 60, cl. “a,” 30 Stat. 562 [U. S. Comp. St. 1901, p. 3446], amended by Act Cong. Feb. 5, 1903, c. 487, § 13, 32 Stat. 799 [U. S. Comp. St. Supp. 1903, p. 416], the failure of the bankrupt to procure the release of such levy did not constitute an act of bankruptcy.</p> <p>2. Same.</p> <p>Where counsel for one of the petitioning creditors of a.bankrupt threatened him with criminal proceedings unless the debt due was immediately paid, whereupon the bankrupt sold certain property for nearly its full value to raise money for the purpose at a time when his entire stock was worth less than his entire indebtedness, but the creditor afterwards refused to receive the money, and instituted criminal proceedings, such sale by the bankrupt did not constitute an act of bankruptcy within Bankr. Act 1898, c. 541, § 3a, subds. 1, 2, 30 Stat. 546 [U. S. Comp. St. 1901, p. 3422], providing that the conveyance of property with intent to hinder, delay, or defraud the bankrupt’s creditors, or a transfer thereof while insolvent with intent to prefer some creditors over others, shall constitute acts of bankruptcy.</p> <p>3. Same — Removal of Property.</p> <p>Where a creditor of a bankrupt removed certain goods from the bankrupt's store during the bankrupt’s absence, and retained possession thereof over the bankrupt’s protest, the bankrupt’s failure to take legal proceedings to recover possession of the goods, in the absence of evidence of collusion, did not constitute an act of bankruptcy within Bankr. Act July 1, 1898, e. 541, § 3a, subd. 1„ 30 Stat. 546 [U. S. Comp. St. 1901, p. 3422], providing that the removal of any part of a bankrupt’s property with his permission, with intent to hinder, delay, and defraud creditors, shall constitute an act of bankruptcy.</p>