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property under composition (Conover et al. v. Dumahaut et al., 17 N. B. R. 558); and the principal element in determining the question whether the debtor should be allowed to keep his property pending discharge is his personal business character, the composition being otherwise just. (In re Wilson et al., 18 N. B. R. 300; Fed. Cas. 17785.)

Discharge. See sec. 14, c.

Discharge not necessary.-Composition obviates discharge (In re Becket, 12 N. B. R. 201; 2 Woods, 173; 7 Chi. Leg. News, 243; Fed. Cas. 1210); and fact that discharge has been refused is not absolute bar to composition. (In re Odell et al., 16 N. B. R. 501; 9 Ben. 247; Fed. Cas. 10427.)

Debtor must pay composition.- Debtor cannot add to provisions of composition by demanding a discontinuance and surrender of property before per cent. is paid (In re McKeon, 11 N. B. R. 182; 7 Ben. 513; 3 Amer. Law R. 611; 11 Alb. L. J. 7; Fed. Cas. 8358); and delivery of notes in composition does not of itself cancel debt (In re Reiman et al., 13 N. B. R. 128; 12 Blatchf. 562; Fed. Cas. 11675. See also In re Hurst, 13 N. B. R. 455; 1 Flip. 462; 8 Chi. Leg. News, 147; 3 Cent. Law J. 78; Fed. Cas. 6925); and if notes are not paid creditor can sue on the notes on original debt (In re Leipziger, 18 N. B. R. 264); but the tender of money according to composition is equivalent to payment. (In re Hinsdale, 16 N. B. R. 550; 9 Ben. 91; Fed. Cas. 6526.)

Litigation after composition effected. The court cannot be asked to suspend the right of creditors to receive composition by injunction unless there is a lien upon the fund (In re Kohlsaat et al., 18 N. B. R. 570; Fed. Cas. 7918); and injunction will not be allowed if debtor fails to plead the composition (In re Tooker, 14 N. B. R. 35; 8 Ben. 390; 23 Pittsb. Leg. J. 185, 196; Fed. Cas. 14096); and where composition has been complied with, an injunction restraining suit in state court is proper. (In re Shafer et al., 17 N. B. R. 116; N. J. Law J. 66; Fed. Cas. 12695.)

Attachments dissolved by compositions.- Composition will dissolve attachment made within four months of commencement of proceedings (Smith, Stebbins & Co. v. Engle et al., 14 N. B. R. 481); but resolution of composition without first meeting of creditors does not dissolve attachment made within four months of such commencement (In re Clapp & Co., 14 N. B. R. 191; 2 Lowell, 468; Fed. Cas. 2785), as confirmation of resolution of composition does not give legal force to what the resolution vainly attempts. (In re Hyman et al., 18 N. B. R. 299; Fed. Cas. 6985.)

Final distribution and disposition.- A court has no power to imprison a creditor for refusing to receive money on finality of composi tion (In re Hinsdale, 16 N. B. R. 550; & Ben. 91; Fed. Cas. 6526); and final order in composition is not disposition of bankruptcy proceedings, and does not, without further order of court, place at disposal of bankrupt moneys belonging to estate held by sheriff. (In re Mickel et al., 19 N. B. R. 371; Fed. Cas. 9529.)

Titles to property after composition.-Court has no power to determine titles between debtor and persons not parties (In re Waltzfelder et al., 18 N. B. R. 260; Fed. Cas. 17048), and assignment after failure of composition must be without prejudice to titles acquired by virtue of composition. (Ex parte Hamlin, 16 N. B. R. 320; 2 Lowell, 571; 5 Cent. Law J. 281; Fed. Cas. 5993.)

Sec. 13. Compositions, when set aside.-a. The judge may, upon the application of parties in interest filed at any time within six months after a composition has been confirmed, set the same aside and reinstate the case if it shall be made to appear upon a trial that fraud was practiced in the procuring of such composition, and that the knowledge thereof has come to the petitioners since the confirmation of such composition.

While compositions induced through fraud may be set aside under this section, the property acquired by the bankrupt, in addition to his estate at the time the composition was confirmed, must be applied to the payment in full of claims of creditors for property sold to him on credit in good faith while such composition was in force, and the residue, if any, must be applied to the payment of the debts which were owing at the time of the adjudication. (Sec. 64c.) Whenever a composition is set aside the court must reinstate the case (sec. 2-9), and the trustee, upon his appointment and qualification, is vested with the title to all of the bankrupt's property, as of the date of the final decree setting aside the composition. (Sec. 70d.) A certified copy of the order setting a confirmation aside is evidence of the jurisdiction of the court, the regularity of the proceedings and of the fact that the order was made. (Sec. 21f.)

Compositions, when set aside.-Bankrupt offered a composition, which was accepted and certain of the creditors paid. On application to set it aside and appoint an assignee, the appointment was made, but it was held that rights acquired under the composition were not to be prejudiced. (Ex parte Hamlin, 16 N. B. R. 320; 2 Lowell, 571; 5 Cent. Law J. 281; Fed. Cas. 5993.)

When not. The court refused to set a composition aside where it appeared that the creditors as well as the bankrupts would be benefited by it (In re Allen et al., 17 N. B. R. 157; 17 Alb. Law J. 170; 20 Pittsb. Leg. J. 143; 6 N. Y. Weekly Dig. 43; Fed. Cas. 210); and the court will not set aside a composition, two years after final order, on account of laches. (In re Herman et al., 17 N. B. R. 440; 9 Ben. 436; Fed. Cas. 6405.) Who may not vacate.-On motion to vacate composition it was held that creditors who have not proved debts cannot take part in composi

tion (In re Bryce et al., 19 N. B. R. 287; Fed. Cas. 2039), and such creditors as had accepted the composition were not entitled to vote for assignee. (Ex parte Hamlin, 16 N. B. R. 320; 2 Lowell, 571; 5 Cent. Law J. 281; Fed. Cas. 5993; In re Herman et al., 17 N. B. R. 440; 9 Ben. 436; Fed. Cas. 6405.) Set aside on practice of fraud.- Creditors are not bound by a composition deed fraudulently procured (Elfeldt v. Snow, 6 N. B. R. 57; 2 Sawy. 94; Fed. Cas. 4352); but see contra: A debt released by composition is not revived by payment in full of other old debts which could not have been enforced, although complaining creditor consented to composition with understanding "that none of the other creditors should receive better terms." (In re Sturgis et al., 16 N. B. R. 304; 8 Biss. 79; 10 Chi. Leg. News, 33; Fed. Cas. 13565.)

Petition to review payment.- Where notes for composition fall due pending the hearing on a petition to review, the amount of the note of petitioner should be paid into court in order to relieve the bankrupt (In re Reynolds, 16 N. B. R. 176; 5 N. Y. Wkly. Dig. 51; Fed. Cas. 11725); but the holder of the note given for deferred payment in composition which falls due pending the hearing of a petition for review, who does not appear to receive payment in pursuance of notice, is entitled, upon subsequent refusal, to a summary order. (In re Reynolds, 16 N. B. R. 176; 5 N. Y. Wkly. Dig. 51; Fed. Cas. 11725.)

Sec. 14. Discharges, when granted.-a. Any person may, after the expiration of one month and within the next twelve months subsequent to being adjudged a bankrupt, file an application for a discharge in the court of bankruptcy in which the proceedings are pending; if it shall be made to appear to the judge that the bankrupt was unavoidably prevented from filing it within such time, it may be filed within but not after the expiration of the next six months.

[Act of 1867. SEC. 29. . . . That at any time after the expiration of six months from the adjudication of bankruptcy, or if no debts have been proved against the bankrupt, or if no assets have come to the hands of the assignee, at any time after the expiration of sixty days, and within one year from the adjudication of bankruptcy, the bankrupt may apply to the court for a discharge from his debts.

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By a discharge is meant the release of a bankrupt from all his debts which are provable in bankruptcy, except such as are excepted by this act. (Sec. 1-12.) The petition therefor must state concisely the proceedings in the case and the acts of the bankrupt. (Orders XXXI.) The liability of a co-debtor, guarantor or surety for a bankrupt is not altered

by the discharge of such bankrupt. (Sec. 16.) For the debts not affected by a discharge, see sec. 17. At least ten days' notice must be given to the creditors, by mail, of all hearings upon applications for the discharge of bankrupts (sec. 58a), which hearing must be before the judge. The court of bankruptcy alone is authorized to discharge or refuse to discharge bankrupts (2-12), and from a judgment granting or refusing a discharge an appeal lies to the circuit court of appeals of the United States and to the supreme court of the territories. (Sec. 25.)

The filing of the application for discharge.— Where a bankrupt who was adjudicated on his own petition makes application for a discharge more than two years after the date of the adjudication, the reason given for not making an earlier application being that, although he had diligently tried, he had been unable to get the consent in writing of a majority of his creditors, is not sufficient. (In re Lowenstein, 13 N. B. R. 479; 3 Dill. 145; 3 Cent. Law J. 82; 33 Leg. Int. 360; Fed. Cas. 8573.) But the refusal of an application for discharge from bankruptcy on the ground that the application was not made within one year from the date of adjudication is not a bar to the filing of a new petition. (In re Farrell, 5 N. B. R. 125; Fed. Cas. 4690.)

Where a petition for discharge is unseasonably made, and, at the proper time, another petition is filed, the proceedings under the first petition are abandoned by the filing of the second, and the court will have jurisdiction. (In re White et al., 18 N. B. R. 107; Fed. Cas. 17533.) It will also have jurisdiction where the first petition is withdrawn, on objection thereto by creditors. (In re Svenson, 19 N. B. R. 229; 11 Chi Leg. News, 367; 8 Reporter, 261; Fed. Cas. 13659.)

The application for a discharge must be made, however, before the administration of the estate is completed and the assignee discharged. (In re Brightman et al., 15 N. B. R. 213; 14 Blatchf. 130; Fed. Cas. 1878; In re Cross, 16 N. B. R. 294; 25 Pittsb. Leg. J. 35; 5 Cent. Law J. 313; Fed. Cas. 3427.)

An involuntary bankrupt is entitled to a discharge under the same circumstances which would justify the discharge of a voluntary bankrupt. (In re Clark, 3 N. B. R. 3; 2 Biss. 73; 1 Chi. Leg. News, 113; Fed. Cas. 2800; In re Bunster, 5 N. B. R. 82; 5 Ben. 242; 41 How. Pr. 406; Fed. Cas. 2136.)

A voluntary bankrupt who has contracted new debts since the filing of a petition in bankruptcy under which a discharge was refused may file a new petition. (In re Drisco, 13 N. B. R. 112; 2 Lowell, 430; Fed. Cas. 4090.)

b. The judge shall hear the application for a discharge, and such proofs and pleas as may be made in opposition thereto by parties in interest, at such time as will give parties in interest a reasonable opportunity to be fully heard, and investigate

the merits of the application and discharge the applicant unless he has (1) committed an offense punishable by iaprisonment as herein provided; or (2) with fraudulent intent to conceal his true financial condition and in contemplation of bankruptcy, destroyed, concealed, or failed to keep books of account or records from which his true condition might be ascertained.

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[Act of 1867. SEC. 29. the court shall thereupon order notice to be given by mail to all creditors who have proved their debts, and by publication, to appear on a day appointed for that purpose, and show cause why a discharge should not be granted to the bankrupt. No discharge shall be granted, or, if granted, be valid, if the bankrupt has wilfully sworn falsely in his affidavit annexed to his petition, schedule, or inventory, or upon any examination in the course of the proceedings in bankruptcy, in relation to any material fact concerning his estate or his debts, or to any other material fact; or if he has concealed any part of his estate or effects, or any books or writing relating thereto, or if he has been guilty of any fraud or negligence in the care, custody, or delivery to the assignee of the property belonging to him at the time of the presentation of his petition and inventory, excepting such property as he is permitted to retain under the provisions of this act, or if he has caused, permitted, or suffered any loss, waste, or destruction thereof; or if, within four months before the commencement of such proceedings, he has procured his lands, goods, money, or chattels to be attached, sequestered, or seized on execution; or if, since the passage of this act, he has destroyed, mutilated, altered, or falsified any of his books, documents, papers, writings, or securities, or has made or been privy to the making of any false or fraudulent entry in any book of account or other document, with intent to defraud his creditors; or has removed or caused to be removed any part of his property from the district, with intent to defraud his creditors; or if he has given any fraudulent preference contrary to the provisions of this act, or made any fraudulent payment, gift, transfer, conveyance, or assignment of any part of his property, or has lost any part thereof in gaming, or has admitted a false or fictitious debt against his estate; or if, having acknowledged that any person has proved such false and fictitious debt, he has not disclosed the same to his assignee within one month after such knowledge; or if,

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