Kempner v. Bauer

Decided February 15, 1907

New York Supreme Court · decided 1907-02-15

<p>Bankruptcy — What passes to the assignee and the nature of Ms title — Effect of discharge of trustee.</p> <p>By the adjudication in bankruptcy and the appointment of the trustee a bankrupt is divested of all title to his property, and the trustee’s discharge does not restore title to the bankrupt or his heirs.</p>

Cited by 2 later decisions — most recently November 1934

2 state decisions

Relies on Rand v. Iowa Central Railway Co.

Good law ✅— No negative treatment on recordhow we know

Decided 1907-02-15

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O’Gorman, J.

¶1It is clear that the interest of the bankrupt in the realty in question belongs in equity to the creditors. By the adjudication in bankruptcy and the appointment of the trustee the bankrupt was divested of all title to *110his. property (Rand v. Iowa Central R. Co., 186 N. Y. 58), and nothing has occurred by which the title has been restored to the bankrupt or his heirs.- The discharge of the trustee should not preclude an application to open the discharge and reinstate the original trustee or appoint a successor. Let the interlocutory judgment provide that one-third of the net proceeds be deposited in the office of the chamberlain of the city of Hew York, subject to the further order of the court. After the sale and the ascertainment of the amount distributable, the trustee in bankruptcy may make such application as he may be advised in the premises..

¶2Ordered accordingly.