Wilson Brothers v. Cassius B. Nelson

Citations

• 183 U.S. 191

Syllabus

<p>When a debtor, years before the filing of a petition in bankruptcy, gives to a creditor an irrevocable power of attorney to confess judgment after maturity upon a promissory note of the debtor; and the creditor, within four months before the filing of the petition in bankruptcy against the debtor, obtains such a judgment and execution thereon; and the debtor fails, at least five days before a sale on the execution, to vacate or discharge the judgment, or to file a voluntary petition in bankruptcy; the judgment and execution are a preference “ suffered or permitted ” by the debtor, within 'the meaning of the bankrupt act of July 1, 1898, c. 541, § 3, cl. 3, and the debtor’s failure to vacate or discharge the preference so obtained is an act of bankruptcy under that act.</p>