In re Lighthall

Citations

• 221 F. 791
• 1915 U.S. Dist. LEXIS 1628

Syllabus

<p>1. Bankruptcy <@=>438—Discharge—Effect.</p> <p>A discharge in bankruptcy does not release the bankrupt’s estate, which existed and passed to his trustee in bankruptcy, from liability to pay proved and allowed debts existing prior to the filing of the petition.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 626; Dec. Dig. <@=>438.]</p> <p>2. Bankruptcy <@=>438—Effect of Closing of Estate.</p> <p>The closing of an estate in bankruptcy does not transfer to the bankrupt the title to unadministered assets, title to which has vested in the trustee.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 626; Dec. Dig. <S=>438.]</p> <p>3. Bankruptcy <@=>148—Property Passing to Trustee—Property Becoming Valuable after Closing of Estate.</p> <p>A bankrupt scheduled as an asset of his estate a claim against S., who had previously made an assignment for the benefit of creditors. S. owned an interest in an insurance policy on the life of a third party, which was of little, if any, cash value, as it was subject to cancellation in certain contingencies and would lapse if premiums were not paid during the life of insured. The assignee continued to hold the policy, and the trustee, without selling the claim against S. or disposing thereof, settled his accounts and was discharged. The premiums on the policy were paid, but not by the bankrupt. The trustee did nothing indicating a purpose to abandon the claim or reinvest the bankrupt with title, except to-report the claim as worthless, and the bankrupt did nothing indicating a purpose to take possession of the claim and exercise ownership over it. Held that, under Bnnkr. Act July 1, 1898, c. 541, § 70a, 30 Stat. 565 (Comp. St. 1913, § 9654), vesting in the trustee all property which the bankrupt could have transferred or which might have been levied upon and sold under judicial process against him, and all rights of action arising upon contracts, where upon insured’s death the amount of S.’s interest in the