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12 F. Cas. 269

Hobson v. Markson

U.S. District Court

Decided July 1, 1871

U.S. District Court · decided 1871-07-01

<p>Case No. 6,565.</p> <p>Bankrupt Act — General Assignments under State Law — Adjudication op Bankruptcy — Collateral Attack:</p> <p>1. A previous voluntary general assignment for the benefit of creditors, made in good faith, and valid under the law of the state where •made, will not be sustained against a valid adjudication of bankruptcy.</p> <p>2. An adjudication made after the return day, but upon petition and appearance, will be sustained in a collateral inquiry.</p> <p>[Cited in Re Bush, Case No. 2,222.]</p> <p>[Cited in Re Bush, Case No. 2,222.]</p>

Decided 1871-07-01

PER CURIAM(DILLON, Circuit Judge, and DELAHAY, District Judge, concurring).

¶1In sustaining a demurrer to the bill (filed by assignees under a voluntary general assignment against assignees in bankruptcy and the petitioning creditors), the court delivered a written opinion, ruling the following points:

¶21. A valid adjudication of bankruptcy against a debtor, has the effect to subject him and'his property to the operation of the bankrupt act, notwithstanding a previous voluntary general assignment for the benefit of creditors; and the assignee in bankruptcy as against the assignee under the state law, is entitled to the possession and control of the estate. In re Burt [Case No. 2.210].

¶3[See, also, Cragin v. Thompson, Id. 3,320.]

¶42. An order of the district court, adjudicating a debtor a bankrupt, made after the return day, but upon á petition of a creditor, and after notice to, and appearance by, the debtor, though it may be irregular, is not void, and cannot be collaterally assailed by his assignees under a previous voluntary assignment.

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