In re Levitt

Citations

• 126 F. 889
• 1903 U.S. Dist. LEXIS 64

Syllabus

<p>1. Bankruptcy — Prior Assignment por Creditors — Claims op Assignee— Allowance.</p> <p>Where, prior to the filing of an involuntary bankruptcy petition, the-bankrupt had made an assignment of his claim on insurance policies which constituted his sole assets, and the assignee had rendered valuable services in attempting to collect such claims, and, on a trustee in bankruptcy being appointed, turned over to him the policies with all proofs and claims, subject to a lien for allowances for the expenses incurred, and the trustee in bankruptcy subsequently settled the claims with the insurance companies, the claim of the assignee for expenses and services was an equitable claim allowable by way of deduction from the fund realized for the benefit of creditors to the extent of beneficial expenditure and service, and was not a claim against the bankrupt within Bankr. Act July 1, 1898, c. 541, § 57, 30 Stat. 560, 561 [U. S. Comp. St. 1901, pp. 3443, 3444], or a debt as defined by section 1, Act July 1, 1898, c. 541, 30 Stat. 544 [U. S. Comp. St. 1901, p. 3419], so as to preclude its allowance for failure of the assignee to prove the same within one year after the-adjudication.</p> <p>f 1. Effect of national bankruptcy act on state insolvency laws and assignments for benefit of creditors, see note to Carling v. Seymour Lumber Co., 51 C C. A. 11.</p>