In re Sabsevitz

Citations

• 197 F. 109
• 1912 U.S. Dist. LEXIS 1393

Syllabus

<p>1. Bankruptcy (§ 871*) — Composition —Objections-—Failure to Keep Books.</p> <p>Where a bankrupt kept a double entry system of books which on their face showed his precise situation, with the single exception of a loan for which certain diamonds had been pledged as collateral, and this loan was entered in the books and on Ms trial balance of August 1, 1911, and it also appeared that a memorandum of the collateral, the amount and due dates of payments on account was also kept at his place of business and was not concealed, composition would not be denied confirmation on the ground that the bankrupt failed to keep books of account or records from which his financial condition might be ascertained with intent to conceal ihe same.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 575; Dec. Dig. § 371.*J</p> <p>2. Bankruptcy (§ 381*) — Composition—Materially False Statement to Obtain Credit.</p> <p>Where a bankrupt submitted a statement to a creditor, not to obtain a general line of credit, but under special circumstances to obtain goods which were fully paid for, and the creditor did not. rely on the statement complained of. he was not entitled to prevent confirmation of a composition on the ground that the bankrupt had obtained property on credit; on a materially false statement in writing to the objecting creditor to obtain credit.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 591; Dec. Dig. § 381.*]</p>