Mahorner v. M. Forcheimer & Co.

Citations

• 73 Miss. 302

Syllabus

<p>1. Assignment nor Creditors. General assignment. Reservation of exempt property. Exempt personal property. Retention of money by debtor. Excessive sum retained. Selection by debtor. Code 1893, § 1971.</p> <p>Where the assignor in a general assignment for the benefit of creditors, embracing all of the assignor’s property save his legal exemptions, retained the proceeds of goods sold out of his store, on the day of and the day immediately preceding that of the assignment, to the amount of three hundred dollars, and there is no showing of any kind that the money so retained was ever selected by him as the exemption of personal property, not to exceed in value two hundred and fifty dollars, allowed to certain debtors, on their selection of the same, by § 1971, code of 1893, and, on the contrary thereof, has, in his answer, under oath, denied that he retained the same, or any part thereof, and averred that all the money so collected by him was applied to the payment of his debts, such retention was fraudulent, and renders the assignment void.</p> <p>3. Same. Administration in chancery cowri. Eistnibution. Priorities. Code 1893, gg 117, 131, 133.</p> <p>Where the assignee in a general assignment, with preferences, has proceeded by petition in the chancery court for the administration of the same, under the provisions of chapter 8, code of 1893, and some of the creditors have filed a cross petition thereunder, and shown that the assignment is fraudulent and void, they are entitled to priority of payment out of the proceeds of the assigned property; but the residue of such proceeds should be ratably distributed among all the other creditors, including those preferred, for, the assignment being wholly annulled, creditors who have not attacked the assignment itself, but merely sought to defeat the preferences contained in it, are not entitled to any priority of payment over the preferred creditors.</p>