In re Habegger

Citations

• 139 F. 623
• 71 C.C.A. 607
• 1905 U.S. App. LEXIS 3911

Syllabus

<p>1. Bankruptcy — Preferences—Securing Attorney’s Fee.</p> <p>A transfer of property by an insolvent debtor, immediately prior to and in contemplation of bankruptcy proceedings, to an attorney, in consideration of the attorney agreeing to perform legal services in negotiating with the creditors of such debtor for a settlement of his financial difficulties without resort to the bankruptcy court, is not validated by section GGd of the national bankruptcy act (Act July 1, 1898, c. 541, 30 Stat. 562 [U. S. Comp. St. 1901, p. 3446]), and the property so transferred may be recovered by the trustee of the bankrupt estate.</p> <p>2. Same.</p> <p>Such transfer of property, made under like circumstances, to an attorney, in consideration of his agreeing to defend the bankrupt debtor against anticipated criminal prosecutions, which are not brought until after the filing of a petition in bankruptcy, is not made valid by section 60d of the act, but may be avoided, and the property recovered by the trustee in bankruptcy.</p> <p>3. Same — Character of Services.</p> <p>The kind of legal services to be performed for which an insolvent debtor contemplating bankruptcy proceedings may contract and make payment for in money or by a transfer of property, under the provisions of section 60d of the bankruptcy act (Act July 1, 1898, c. 541, 30 Stat. 562 [U. S. Comp. St. 1901, p. 3446]), are such services as are rendered in aid of the purpose sought to be accomplished by the act, conserve and benefit the estate of the bankrupt, and thus inure to the benefit of creditors, or are such legal services as are contemplated by the act in bringing the bankrupt estate before the court, its subsequent administration and distribution to the creditors, and the like.</p> <p>(Syllabus by the Court.)</p>