Keystone Brewing Co. v. Schermer

Citations

• 241 Pa. 361
• 88 A. 657
• 1913 Pa. LEXIS 792

Syllabus

<p>Judgments — Bankruptcy—National Bankruptcy Act of 1898, Bee. 67, Clause f — Insolvency—Evidence—Burden of proof — Lien of judgment on real estate — Discharge of liens by bankruptcy proceedings — Creditors—Bights of creditors not parties to bankruptcy proceedings.</p> <p>1. The lien of a judgment entered within four months prior to the filing of a petition in bankruptcy against the judgment defendant who is subsequently adjudged a bankrupt is not invalidated under the provisions of clause “f,” Section 67 of the National Bankruptcy Act of 1898, which declares null and void all levies, judgments, attachments, or other liens, obtained against an insolvent within four months prior to the filing of a petition in bankruptcy against him in case he is adjudged a bankrupt, unless it appear that the defendant was insolvent at the time when the judgment was entered, and the burden of proving such insolvency rests upon the party alleging it.</p> <p>2. The vendee of land subject to the lien of such a judgment agreed with his vendor to pay off existing liens, and gave him an option to repurchase the land. In bankruptcy proceedings, begun on the day of the conveyance, the vendor was adjudged a bankrupt. The land was not listed among the bankrupt’s assets, and never came within the custody of the bankruptcy court; the trustee merely sold the bankrupt’s option to repurchase, and induced the vendee of the land to pay over the balance of the purchase money which was applicable under the contract of sale to the discharge of liens. The judgment creditor was not a party to these arrangements, never proved his debt in the bankruptcy court, and did not share in the dividend which was declared. Held, in an action of scire facias to revive and continue the judgment as a lien on the land, that neither the bankruptcy proceedings nor the acts of the trustee had in any way impaired the validity of the lien. Judgments — 8ci. fa. to revive — Buie to open judgment — Bes adjudicata.</p> <p>3. Wher