Bankruptcy Law Commons^™

Rights Of Trustee In Bankruptcy To Cash Surrender Value Of Insurance Policies Of A Bankrupt, George W. Hatfield Jr.

Kentucky Law Journal

No abstract provided.

Bankruptcy-Set-Off-Bank Deposits, A. E. Anderson S.Ed.

Michigan Law Review

Endorsers of a corporation's notes caused the corporation to make deposits in the payee bank in the regular course of business, knowing the corporation to be insolvent, and the bank took over the deposits within four months of adjudication in bankruptcy. It was contended that under the amended definition of "transfer" as set out in section 1 (30) of the Bankruptcy Act of 1938, this transaction resulted in a voidable preference to the endorsers under section 60. The trial court rejected this contention. On appeal, held, affirmed. Although the 1938 amendment gave a broader significance to the term "transfer" …

Bankruptcy-Contempt--Presumptions-Finality Of Turnover Orders In Contempt Actions And The Presumption Of Continued Possession, T. L. Tolan, Jr. S.Ed.

Michigan Law Review

Problems of jurisprudence and bankruptcy are raised by Maggio v. Zeitz, a recent decision of the United States Supreme Court. The facts were these: In April, I942, the Luma Camera Service was adjudged a bankrupt. Defendant was its principal officer. The bankrupt's books showed a large and unusual merchandise shortage for November and December, 1941. Despite defendant's denial, the referee and district judge were satisfied that defendant had extracted the property from the estate before bankruptcy. But there was no evidence that defendant retained the goods or their proceeds. Relying on a presumption of continued possession, the referee ordered …

Taxation-Deductions For Partial Worthlessness Of A Debt, John M. Veale S.Ed.

Michigan Law Review

Taxpayer was accustomed to loan money to a related corporation on open accounts. The debtor consistently lost money and became bankrupt in 1938. Thereupon taxpayer wrote off the whole debt using it as a deduction from 1938 income. The commissioner assessed a deficiency on the theory that the taxpayer, by a subordination agreement made with another creditor in 1931, had recognized the then balance to be worthless. Hence, he argued, advances made after that date were a separate debt; therefore taxpayer had lost the right to deduct the debt due in 1931 for failure to take it in the year …

Cases Noted, Journal Staff

Vanderbilt Law Review

bankruptcy--unclaimed dividends--distribution to creditors who have not been paid in full

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constitutional law--prohibition of practice of naturopathy as a separate branch of the healing arts

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constitutional law--unAmerican activities committee held valid exercise of congressional power

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criminal law--evidence--admission of confession

Corporations-Insolvency-Corporate Officers As Preferred Wage Claimants, E. C.V. Greenwood

Michigan Law Review

A closed corporation, soon after its formation, executed an assignment for the benefit of creditors. One of the large creditors objected to a preferred wage claim allowed by the assignee to a vice-president and director of the assignor, the officer who had in fact been instrumental in executing the assignment. The claim was for wages amounting to two hundred fifty dollars for alleged manual work for the assignor prior to the assignment and was granted by the assignee on the theory that preferential treatment was authorized by the New York debtor and creditor statutes. The applicable statute reads as follows: …

The Effect Of The National Bankruptcy Code Upon The Uniform Business Corporations Act, Jennings P. Felix

Washington Law Review

The Federal Constitution provides that Congress shall have the power to establish uniform bankruptcy laws. This does not deprive the states of their power to enact insolvency laws but merely suspends the operation of such laws where enforcement would conflict with the Federal Act. Whether an insolvency statute is considered a bankruptcy act depends on whether the debtor is given an absolute discharge. The whole of the state act or merely the discharge portion may be invalid depending upon whether its other sections are inseparably interlaced with the discharge provision. If the highest court of the state declares its discharge …

Waiver Of Discharge In Subsequent Proceedings

Indiana Law Journal

Bankruptcy Note

Contracts-Bills And Notes-Precedent Debt As Consideration In The Law Of Contracts And Negotiable Instruments, Shubrick T. Kothe S.Ed.

Michigan Law Review

Today, there is little left of the sixteenth century rule that a precedent debt is consideration sufficient to ground an action of assumpsit. Modern cases, such as those where a debt is barred by the Statute of Limitations or discharged in bankruptcy, where it is historically applicable, generally do not rest upon that theory. As a practical matter, it makes little difference. These cases achieve a just result, and have been confined to standard fact situations. The doctrine seems clearly at variance with the rule that consideration cannot be past, and serves no useful purpose today. Cases where this problem …

Bankruptcy

Indiana Law Journal

Indiana Legislation, 1947

Bankruptcy - Chapter X Reorganization - Power Of The Trustee To Sue In A Foreign Jurisdiction, Shubrick T. Kothe S.Ed.

Michigan Law Review

Plaintiffs, trustees appointed under Chapter X of the Bankruptcy Act, as amended, by the District Court for the Eastern District of Virginia, sued defendants in the District Court for the Southern District of New York to recover corporate assets, alleging a conspiracy to defraud the debtor corporation. Jurisdiction was rested, not upon diversity of citizenship, but upon sections 2 and 102 of the Bankruptcy Act, and certain sections of the Judicial Code, not pertinent here. The district court dismissed the action for want of jurisdiction. On appeal, held, reversed. The reorganization trustee under Chapter X may maintain an action …

Bankruptcy-Bankrupt's Petition To Reopen Estate, Joseph N. Morency, Jr. S.Ed.

Michigan Law Review

Petitioner's no-asset estate in bankruptcy was closed and a discharge was granted in 1942. In 1945 a judgment creditor of the bankrupt sued in a Connecticut court on a judgment which antedated the bankruptcy proceeding and the existence of which was unknown to the bankrupt at the time he filed his schedules. It appeared that the bankruptcy proceeding was likewise unknown to the judgment creditor. Petitioner sought an order reopening the estate for the purpose of amending schedules to include the judgment inadvertently omitted; and the district court entered such an order over the objection of the judgment creditor. On …

Reglas Para La Liquidación Judicial De La Sociedad De Gananciales, Eduardo Rafael Núñez

Mario Diaz Cruz Pamphlets

No abstract provided.

Taxation--Exemptions--Income-Producing Real Property Of Charity, M. D. B. Jr.

West Virginia Law Review

No abstract provided.

Res Judicata Of Judgment Creditor's Claim

Indiana Law Journal

Notes and Comments: Bankruptcy

Corporations-Extent Of Powers To Dispose Of Property In Winding Up Its Affairs Under Statutes Extending Corporate Existence, Joseph R. Brookshire S.Ed.

Michigan Law Review

According to the common law a dissolved corporation ceased to exist for all purposes. Whether the dissolution was voluntary or involuntary, the effect of the dissolution was to deprive the corporation of all powers either de jure or de facto. It was necessary, therefore, that corporations facing dissolution proceed without delay toward a final liquidation and distribution of assets. Disregarding the old theory that personal property of dissolved corporations escheated to the state, and that its real estate reverted to the original granter or his heirs, and that debts due the corporation were extinguished, it is still apparent that hurried …

Bankruptcy--Six Months Rule--Application Of The Rule To Private Corporations, Samuel D. Estep S.Ed.

Michigan Law Review

The debtor, being reorganized under chapter 10 of the Bankruptcy Act, was a hotel corporation which owned and operated a hotel in Albany. The reorganization plan which was approved below is being challenged for the reason, among others, that the plan gives preference to certain unsecured creditors. These creditors had furnished supplies to the hotel for a short time before the receiver was appointed in the foreclosure suit which precipitated the bankruptcy proceeding. The trustee allowed the priority on the ground that the supplies were necessary to keep the hotel a going concern and that the six months rule, applicable …

Limitations Of Action-Statute Of Limitations As Guide For Determination Of Laches Where Concurrent Remedies Are Available In Law And Equity, Craig E. Davids S.Ed.

Michigan Law Review

In 1926 Bovay, one of the complaining trustees in bankruptcy herein, organized an Arkansas corporation to construct and operate a vehicular traffic bridge across the Mississippi River. Defendants agreed to finance the project but were dissatisfied with the voting control of the Arkansas corporation lodged in Bovay and organized a Delaware corporation, the bankrupt herein, to take an assignment of the bridge franchise. The bankrupt issued 60,000 shares of no par value common stock, 40,000 shares going to defendants though no consideration was paid, and 20,000 shares to Bovay. Defendants also named five of the nine members of the board …

Agricultural Composition And Extension

Indiana Law Journal

Notes and Comments: Bankruptcy

Abstracts, Katherine Kempfer

Michigan Law Review

The abstracts consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.

Bankruptcy - Voidable Preferences - Transfer Perfected Within Four Months Of Bankruptcy, Elizabeth Durfee

Michigan Law Review

Two recent cases, Adams v. City Bank & Trust Co., and In re Quaker City Sheet Metal Co., both involving section 60 of the Chandler Act, bring to the fore a question of interpretation of that section which has bothered Congress and courts and lawyers for some forty years. The bankrupt executes a mortgage to secure repayment of a present loan, but the recording of the mortgage is withheld until a later date, and finally takes place within four months of bankruptcy. Or, as in the Quaker City case, he assigns a chose in action to the creditor …

Recent Decisions, Michigan Law Review

Michigan Law Review

The recent decisions consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.

Powers - Rights Of Donees' Creditors Against Property Subject Thereto When The Power Is General And Is Exercised By Will, Charles Wright, Ill

Michigan Law Review

In general it is said that the majority of jurisdictions in the United States allow creditors of the donee of a general power of appointment, exercisable by deed or will, or by will only, to reach the appointive property when the power is exercised by will, if the donee's personal estate is insolvent and if the appointment is to a volunteer. It would appear from a survey of the authorities dealing with the question that only twenty states have spoken on the subject at all. Of that number only sixteen have decisions which can, by any stretch of the imagination, …

Powers - Excluding Creditors Of The Donee Of A General Power By Express Provisions By The Donor, S. W. Boyce, Jr.

Michigan Law Review

There is very little authority upon this subject; lawyers seemingly assume that the picture is complicated enough without venturing into new fields. In only two jurisdictions are there actual reported cases where the donor has tried by specific provisions to restrain creditors of the donee.

Bankruptcy - Reorganization - Nature Of Farmer-Debtor's Right To Adjudication Under Section 75 (S), Louis C. Andrews, Jr.

Michigan Law Review

Plaintiff, a farmer, filed his original petition May 3, 1934, under section 74 of the Bankruptcy Act. Eleven months later he amended his petition, seeking relief under section 75 (a)-(r). Until March 2, 1940, no progress was made, and at that time the plaintiff sought adjudication under subsection (s). The district court entered an order that the petition be denied and the mortgagee's title recognized. The circuit court of appeals affirmed, stating that the petitioner had an affirmative duty to proceed diligently in obtaining a composition and extension agreement under subsections (a)-( r). Held, reversed. The benefits of section …

Bankruptcy--Failure To Keep Records As Grounds For Denial Of Discharge, M. S. K.

West Virginia Law Review

No abstract provided.

Judicial Sales - Right To Set Aside A Successful Bid, Michigan Law Review

Michigan Law Review

At a public sale, the trustee in bankruptcy struck off to the plaintiff a bankrupt's assets for $16,850, a reasonable price. A referee vacated the sale when a private bidder offered $150 more and insured reopening of the bankrupt's mines and employment of its former employees. The sale was finally confirmed to the private bidder at a price only $50 in excess of the final offer made by the highest bidder at the public auction. Plaintiff appealed to the court to review the referee's order. Held, although the courts do not generally approve of vacating a fair public sale …

Corporations - Rights Of Action By The Representative Of Corporate Creditors - Effect Of Corporate Assent, Edward W. Adams

Michigan Law Review

By various acts the directors and officers of a corporation--its agents for the conduct of corporate business--may wrong the corporation or make possible a wrong to the corporation or to the body of corporate stockholders. When the corporation becomes involved in insolvency proceedings, in order to make available to creditors as many assets as possible, the receiver or trustee in bankruptcy determines whether some cause of action will lie to recover damages or property, or whether he may successfully defend to preserve assets. If the corporation itself could have been successful in the litigation, the solution would be easy because …

Bankruptcy-Effect Of Rule Of Erie Railroad V. Tompkins On Priorities In Federal Bankruptcy Proceedings, Michigan Law Review

Michigan Law Review

A company engaged in the mortgage-guaranty business became bankrupt, the respondent being the successor company resulting from reorganization proceedings under section 77B of the Bankruptcy Act. The original company had loaned money secured by a bond and mortgage and then sold certificates to the public representing undivided shares in the mortgage, the certificates being guaranteed by the same company. The mortgagor having defaulted, the controversy in the principal case arose because the now bankrupt company had before bankruptcy repurchased two of the certificates, acquired title to a third, and held the balance of the loan for which no certificates had …

Bankruptcy--Right Of An Unincorporated Body To File A Voluntary Petition, G. W. E.

West Virginia Law Review

No abstract provided.