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SIR. Please take notice, that the within proposed order will be presented for settlement to Hon.

United States District Court, for the ..

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at the Court House on the 19..., at

Judge of the District day of

. o'clock in the forenoon of

that day or as soon thereafter as counsel can be heard.

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(Hagar and Alexander's Bankruptcy Forms [2d Ed.], No. 19.)

United States District Court,

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against whom a petition for adjudication in bankruptcy has been and does controvert such petition and file the following

filed herein

answer:42

41. Or a

creditor of

against whom," showing clearly the possession of a provable debt (§ 63, as interpreted by § 57).

42. There may, of course, be several counts in the answer. Careful pleading seems to require one for at least each material fact at issue.

43

1. Denies 13 that he is insolvent as alleged in said petition.

2. Denies that he has committed an act of bankruptcy as alleged in paragraph No. of the petition, but on the contrary,

44

alleges the facts to be as follows:"

3. Denies that

and ....

petitioning creditors herein, have

but, on the

provable claims against him which amount in the aggregate in excess of the value of securities held by them to $ contrary, alleges the facts to be as follows:45

Wherefore,

....

avers that he should not be

adjudged bankrupt for any cause in said petition alleged, and prays a hearing thereon and that the petition herein be dismissed (with costs).

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Cross-references. This form supplements Form No. 6. Consult, generally, § 18; and for available grounds for an answer see §§ 3-a-b, 4, 5, and 59. For form for adjudication, see Form No. 12; for dismissal, see Form No. 11. See also, generally, the Equity Rules, Vol. IV, post.

Answer. [See § 18, Vol. I, ante.]

Defense of solvency. Acme Food Co. v. Meier (C. C. A., 6th Cir.), 18 Am. B. R. 550, 153 Fed. 74, 82 C. C. A. 208.

Answer should contain an express denial of insolvency when such an issue is made.

Cummins Grocer Co. v. Talley (C. C. A., 6th Cir.), 26 Am. B. R. 484, 187 Fed. 507, 109 C. C. A. 273.

When immaterial.

In re Sully (C. C. A., 2d Cir.), 18 Am. B. R. 123, 152 Fed 619, 81 C. C. A. 609. See Lockman v. Lang, 12 Am. B. R. 497, 132 Fed. 1, 65 C. C. A. 62). Objections to jurisdiction may be taken by answer as well as in motion to dismiss.

In re Taylor, 4 Am. B. R. 515, 102 Fed. 728.

43. The three objections here suggested are but samples. Each answer should be adapted to the facts relied

on.

44. Here the facts relied on by the

answering bankrupt or creditor should be pleaded.

45. Id.

46. Or "creditor."

47. See foot-note 34 to Form No. 358.

When corporation admits inability to pay debts and willingness to be adjudged bankrupt, question of its insolvency is immaterial.

In re Duplex Radiator Co., 15 Am. B. R. 324, 142 Fed. 906.

Reduction of amount of indebtedness by settlement with certain creditors after general assignment.

In re Jacobson (D. C., Mass.), 24 Am. B. R. 927, 181 Fed. 870.

Answer may contain any available defense or counterclaim.

In re Paige, 3 Am. B. R. 679, 99 Fed. 538.

Hill v. Levy, 3 Am. B. R. 374, 98 Fed. 94.

Leidigh Carriage Co. v. Stengel, 2 Am. B. R. 383, 95 Fed. 637; Bray v. Cobb, 1 Am. B. R. 153, 91 Fed. 102.

Insanity as a defense.

In re Ward (D. C., N. J.), 20 Am. B. R. 482, 161 Fed. 755.

Amendment of answer permitted.

In re Harris, 19 Am. B. R. 204, 155 Fed. 216.

If answer is prolix or defective, may be stricken out, or amendment allowed. Bradley Timber Co. v. White, 10 Am. B. R. 329, 121 Fed. 779, 58 C. C. A. 55, affg. 9 Am. B. R. 441.

In re Coe, 1 Am. B. R. 504, 92 Fed. 333.

In re Ogles, 1 Am. B. R. 671, 93 Fed. 426.

Respondent entitled to file answer, and not concluded by finding of State court which appointed a receiver upon the ground of insolvency.

In re Pickens Mfg. Co., 20 Am. B. R. 202, 158 Fed. 894.

Secured creditor holding claim in excess of value of security may file answer. Johansen Bros. Shoe Co. v. Alles (C. C. A., 8th Cir.), 23 Am. B. R. 299, 197 Fed. 274, 116 C. C. A. 636.

Creditor holding attachment, the lien of which would be dissolved.

In re C. Moench and Sons Co., 10 Am. B. R. 590, 123 Fed. 965.

Preferred creditor.

Goldman and Co. v. Smith, 1 Am. B. R. 266, 93 Fed. 182.

Verification.-[See § 18, Vol. I, ante.] Must be verified.

Attorney may verify for creditor when facts are within his knowledge or creditor is a non-resident.

Claim of, "Not real party in interest." Strellow v. Schloss (C. C. A., 3d Cir.), 19 Am. B. R. 359, 156 Fed. 662, 84 C. C. A. 374, revg. 149 Fed. 907. Stockholders as such are not creditors of a corporation entitling them to file

an answer.

In re Eureka Anthracite Coal Co., 28 Am. B. R. 759, 197 Fed. 216.

A receiver appointed by a State court is competent to resist petition for adjudication.

In re Gold Run Mining and Tunnel Co., 29 Am. B. R. 563, 200 Fed. 162.

In re Hudson River, etc., Co. (D. C., N. Y.), 23 Am. B. R. 191, 173 Fed. 934, affd. 25 Am, B. R. 504, 183 Fed. 701, 106 C. C. A. 139.

Blackstone v. Everybody's Store, 30 Am. B. R. 497, 207 Fed. 752, 125 C. C. A.

290.

Insolvency. [see § 1, Vol. I, ante.]

What constitutes.

Upson v. Mt. Morris Bank (N. Y. App. Div.), 14 Am. B. R. 6, 103 App. Div. (N. Y.) 367.

Voorhees v. Ungar et al., 165 App. Div. (N. Y.) 566.

In re Golden Malt Cream Co. (C. C. A., 7th Cir.), 21 Am. B. R. 36, 164 Fed. 326, 99 C. C. A. 258.

In re Wm. S. Butler and Co. (Butler v. Palmenberg) (C. C. A., 1st Cir.), 30 Am. B. R. 502, 207 Fed. 705, 125 C. C. A. 223.

"Suspicious circumstances."

Barr v. Sofranski, 130 App. Div. (N. Y.) 793.

Unpaid stock subscriptions are assets which must be considered.

In re Commonwealth Lumber Co. (D. C. Mass.), 35 Am. B. R. 202, 223 Fed. 667.

Liability as surety or indorser when principal is solvent is not such a liability as could be counted against a person on the question of solvency or insolvency.

In re Bowers, 33 Am. B. R. 51, 215 Fed. 617.

Property fraudulently conveyed, nor concealed assets considered in determining question of solvency.

In re R. F. Duke and Son, 28 Am. B. R. 195.

In re Wenatchee Heights Orchard Co. (D. C., Wash.), 30 Am. B. R. 401, 204 Fed. 674.

In re R. F. Duke and Son (supra).

No presumption from adjudication in bankruptcy that debtor was insolvent at the time the judgment was obtained.

McNeel v. Folk (W. Va. Sup. Ct. of App.), 33 Am. B. R. 234.)

Form No. 81

ANSWER ALLEGING MORE THAN TWELVE CREDITORS (Hagar and Alexander's Bankruptcy Forms [2d Ed.], No. 20.) In the District Court of the United States, for the

... District

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against whom a petition for an adjudication in bankruptcy has been filed herein, (or creditor,) and does hereby controvert such petition. and file the following answer:

That the creditors of the said

more in number.

are twelve and

That annexed hereto is a list of all such creditors, with their addresses, under oath, as required by § 59-d of the bankruptcy law of 1898.

Wherefore, answer is made to such petition, and a hearing and the judgment of the court is asked thereon.

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The following is the list of the creditors and their addresses, referred to in the foregoing answer.

LIST OF CREDITORS AND ADDRESSES

NAMES OF CREDITORS.

ADDRESSES.

Answering Bankrupt, (or Creditor).

STATE OF.
County of..

I,

....

SS.:

the answering bankrupt [or creditor] mentioned and described in the foregoing answer, do hereby make solemn oath that the statements of fact contained in such answer are true, according to the best of my knowledge, information and belief; and also that the list annexed thereto and therein referred to comprises all of the creditors of the said .... ... and gives their

addresses, so far as they are known or can be ascertained. Subscribed and sworn to before me, this ...... day of

19...

Cross-references.- Only available where petition is within § 59-d. Consult, generally, §§ 18 and 59. See foot-notes to Form 80, ante.

A jury trial cannot be demanded or the issue raised by this answer.
Service of notice.-

In re Tribelhorn (C. C. A., 2d Cir.), 14 Am. B. R. 491, 137 Fed. 3, 69 C. C. A. 601.

Insufficiency in allegation not an incurable jurisdictional defect.

In re Haff (C. C. A., 2d Cir.), 13 Am. B. R. 362, 136 Fed. 78, 68 C. C. A. 646.

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