Page images
PDF
EPUB

TITLE VII.-PROCEEDINGS FOR THE DISPOSITION OF THE REAL PROPERTY OF AN INFANT, LUNATIC, IDIOT, OR HABITUAL DRUNKARD.

TITLE VIII.-ARBITRATIONS.

TITLE IX.-PROCEEDINGS TO FORECLOSE A MORTGAGE BY ADVERTISEMENT.

TITLE

X.-PROCEEDINGS TO CHANGE THE NAME OF
AN INDIVIDUAL.

TITLE XI.-PROCEEDINGS FOR THE VOLUNTARY DIS

SOLUTION OF A CORPORATION.

TITLE XII.-PROCEEDINGS SUPPLEMENTARY

то ΑΝ

EXECUTION AGAINST PROPERTY.

TITLE I.

Proceedings relating to insolvent debtors and to prisoners. ARTICLE 1. Discharge of an insolvent from his debts.

2. Exemption from arrest, or discharge from imprisonment, of an insolvent debtor

3. Discharge of an imprisoned judgment debtor from imprison

[blocks in formation]

DISCHARGE OF AN INSOLVENT FROM HIS DEBTS.

2149. Who may be discharged. 2150. To what court application

to be made..

2151. Contents of petition. 2152. Consent of creditors to be annexed.

2153. Consent of executor, administrator, receiver, etc.,

2154. Id.; of corporation, etc. 2155. Id. of partnership. 2156. Effect of consent where petitioner is a joint debtor. 2157. Consent of purchaser of debt, etc.

2158. Consenting creditor must relinquish security. 2159. Penalty if creditor swears falsely. 2160. Affidavit of consenting creditor.

2161. When non-resident creditor to annex account, etc.

2162. Petitioner's schedule. 2163. His affidavit.

2164. Order to show cause. 2165. How order published and served.

[blocks in formation]

2169. Id.; to file proofs, if not named in schedule.

2170. Proceedings if jurors do not agree

2171. When insolvent required to produce his non-resident wife.

2172. Examination of insolvent. 2173. When insolvent cannot be discharged.

2174. When assignment to be directed.

2175. Assignment; contents, and to whom made. 2176. Id.; trustees, how designated.

2177. Effect of assignment. 2178. When discharge to be granted.

2179, 2180 Proceedings where trustee refuses to give certificate, etc.

2181. Discharge, etc., to be recorded.

2182. Effect of discharge. 2183. 1d.; exception as to foreign contracts or creditors. 2184. Id.; as to delts, etc. to the United States and the State.

2185. Insolvent to be released from imprisonment. 2186. Discharge, when void. 2187. Invalidity may be proved on motion to vacate order of arrest, etc,

§ 1164, Consol. Act.

121 N. Y.241.

§ 1164, Consol. Act.

§ 2149. An insolvent debtor, who is a resident of the State at the time of presenting his petition, may be dis charged from his debts, as prescribed in this article.

2150. Application for such a discharge must be made by the petition of the insolvent, addressed to the county court of the county in which he resides; or, if he resides in the city of New York, to the court of common pleas for that city and county.

§ 2151. The petition must be in writing; it must be signed by the insolvent, and specify his residence; it must set forth in substance, that he is unable to pay all his debts in fullthat he is willing to assign his property for the benefit of a his creditors, and, in all other respects, to comply with th provisions of this article, for the purpose of being dis charged from his debts; and it must pray that, upon his s doing, he may be discharged accordingly. It must be veri fied by the affidavit of the insolvent, annexed thereto taken on the day of the presentation thereof, to the effect that the petition is in all respects true, in matter of fact.

$2152. The petitioner must annex to his petition one or more written instruments, executed by one or more of his creditors, residing in the United States, having debt owing to him or them in good faith, then due or thereafte: to become due, which amount to not less than two thirds of all the debts, owing by the petitioner to creditors residing within the United States. Each instrument must be to the effect, that the person or corporation, executing it, consents to the discharge of the petitioner from his debts, upon his complying with the provisions of this article.

2153. An executor or administrator may become consenting creditor, under the order of the surrogate's coun from which his letters issued. A trustee, official, assignee, or receiver of the property of a creditor of the petitioner. 1 whether created by operation of law or by the act of parties may become a consenting creditor, under the order of justice of the supreme court. A person who becomes consenting creditor, as prescribed in this section, is charge able only for the sum which he actually receives, as a divi dend of the insolvent's property.

2154. Where a corporation or joint-stock association becomes a consenting creditor, its consent must be executed under its common seal, and may be attested by any directo or other officer thereof, duly authorized for that purpose who may make any affidavit, required of a creditor in the proceedings.

§ 2155. Where a partnership becomes a consenting creditor, the consent may be executed in its behalf, and any affidavit, required of a creditor in the proceedings, may made, by either of the partners.

§ 2156, A creditor's consent does not affect his remed

gainst any person or persons indebted jointly with the etitioner; and the petitioner's discharge has the effect, s between the creditor and the other joint debtors, of a omposition between the petitioner and the creditor, made s prescribed in article third of title fifth of chapter fifteenth f this act.

§ 2157. Where a consenting creditor is the purchaser r assignee of a debt against a petitioner, or the executor, dministrator, trustee, or receiver of such a purchaser or ssignee, he is deemed, for all the purposes of this article, xcept as to the declaration and receipt of dividends, a reditor only to the amount, actually and in good faith aid for the debt, by him, or by the decedent or other erson, from whom he derives title, and remaining uncolected. This section is not affected by the recovery of a dgment for the debt, after the purchase or assignment; ut in that case the consenting creditor may include the ncollected costs, as if they were part of the sum paid for le debt.

$2158. A creditor who has, in his own name, or in ust for him, a mortgage, judgment, or other security, for e payment of a sum of money, which is a lien upon, or therwise affects, real or personal property belonging to the etitioner, or transferred by him since the lien was created, annot become a consenting creditor, with respect to the ebt so secured, unless he adds to or includes in his consent, written declaration, under his hand, to the effect, that he elinquishes the mortgage, judgment, or other security, so ar as it affects that property, to the trustee to be appointed ursuant to the petition, for the benefit of all the creditors. uch a declaration operates, to that extent, as an assignment the trustee, of the mortgage, judgment, or other security; nd vests in him accordingly all the right and interest of me consenting creditor therein.

§ 2159. If a creditor knowingly swears, in any proeedings authorized by this article, that the petitioner is, - will become, indebted to him, in a sum of money, which not really due, or thereafter to become due; or in more an the true amount; or that more was paid for a debt, hich was purchased or assigned, than the sum, actually ad in good faith paid therefor; he forfeits to the trustee, be recovered in an action, twice the sum, so falsely vorn to.

§ 2160. The consent of a creditor must be accompanied ith his affidavit, stating as follows:

1. That the petitioner is justly indebted to him, or will ecome indebted to him, at a future day specified therein, a sum therein specified; and, if he, or the person from hom he derives title, is or was the purchaser or assignee E the debt, he must also specify the sum, actually and in ood faith paid for the debt, as prescribed in section two housand one hundred and fifty-seven of this act.

2. The nature of the demand, and whether it arose up written security, or otherwise, with the general ground consideration of the indebtedness.

3. That neither he, nor any person to his use, has re ceived from the petitioner, or from any other person, pay ment of a demand, or any part thereof, in money or in an other way, or any gift or reward of any kind, upon an es press or implied trust, confidence, or understanding, the he should consent to the discharge of the petitioner.

Where a consenting creditor is an executor, administr tor, trustee, receiver, or assignee, he may state the neces sary facts, in his affidavit, upon information and belie setting forth therein the grounds of his belief; but in the case, the consent must also be accompanied with the af davit of the insolvent, to the effect, that all the matters fact stated in the affidavit of the consenting creditor, a true.

§ 2161. [Am'd 1889.] A consenting creditor, residing without the State, and within the United States, must ar nex to his consent the original accounts, or sworn copie thereof, and the original specialties or other written secur ties, if any, upon which his demand arose or depends; pro vided, however, that when such original specialties, other written sccurities, are lost, such fact must be stated as a reason for not annexing thereto the consent, and the fact of the loss, and the manner of the loss thereof must be stated in the affidavit of the creditor to the best of his knowledge, or must be otherwise proved by affidavit to the satisfaction of the court; and the court may thereupon, in such case or proceeding by its order, dispense with the a nexing to such consent of the original specialties or othe written securities.

S2162. The petitioner must annex to his petition schedule, containing :

1. A full and true account of all his creditors.

2. A statement of the place of residence of each credite if it is known; or, if it is not known, a statement of the fact.

3. A statement of the sum which he owes to each cre itor, and the nature of each debt or demand, whethe arising on written security, on account, or otherwise.

4. A statement of the true cause and consideration of hi indebtedness to each creditor, and the place where the in debtedness accrued.

5. A statement of any existing judgment, mortgage, collateral or other security, for the payment of the debt. 6. A full and true inventory of all his property, in lat or in equity, of the incumbrances existing thereon, and all the books, vouchers, and securities, relating thereto.

§ 2163. An affidavit, in the following form, subscrib and taken by the petitioner before the county judge, or, the city of New York, before the judge holding the te

of the court, at which the order specified in the next section is made, must be annexed to the schedule:

"I, do swear" (or "affirm ", as the case may be,) "that the matters of fact, stated in the schedule hereto annexed, are, in all respects, just and true; that I have not, at any time or in any manner whatsoever, disposed of or made over any part of my property, not exempt by express provision of law from levy and sale by virtue of an execution, for the future benefit of myself or my family, or disposed of or made over any part of my property, in order to defraud any of my creditors; that I have not, in any instance, created or acknowledged a debt for a greater sum than I honestly and truly owed; and that I have not paid, secured to be paid, or in any way compounded with, any of my creditors, with a view fraudulently to obtain the prayer of my petition.

§ 2164. The petition and other papers, specified in the foregoing sections of this article, must be presented to the court, and filed with the clerk. The court must thereupon make an order, requiring all the creditors of the petitioner to show cause before it, at a time and place therein specified, why an assignment of the insolvent's property should not be made, and he be thereupon discharged from his debts, as prescribed in this article; and directing that the order be published and served, as prescribed in the next section.

§ 2165. [Am'd 1890.] The order must be published and served in the following manner :

1. The petitioner must cause a copy thereof to be published in a newspaper, designated in the order, published in the county; and also, if one-fourth part of the insolvent's debts accrued or are due to creditors residing in the city of New York, in a newspaper published in that city, designated in the order. The publication must be made at least once in each of ten weeks, immediately preceding the day in which cause is to be shown, unless all the creditors reside within one hundred miles of the place where cause is to be shown, in which case the publication must be made at least once in each of the six weeks, immediately preceding that day.

2. The petitioner must also serve upon each creditor, re- 89 Hun, 504, siding within the United States, whose place of residence is known to him, a copy of the order to show cause, either personally, at least twenty days before the day when cause is to be shown, or by depositing it, at least forty days before that day, in the post-office, inclosed in a post-paid wrapper, addressed to the creditor at his usual place of residence. Where the State is a creditor of the petitioner a copy of the order must be served upon the Attorney-General, who must represent the State in the subsequent proceedings.

2166. On the day specified in the order, and before any other proceedings are taken in the matter, the petitioner

« PreviousContinue »