ACT OF BANKRUPTCY - Black's Law Dictionary

What is ACT OF BANKRUPTCY? Definition of ACT OF BANKRUPTCY in Black's Law Dictionary

Any act which renders a person liable to be proceeded against as a bankrupt, or for which he may be adjudged bankrupt.

These acts are usually defined and classified in statutes on the subject. Duncan v. Landis, C.C.A.Pa., 106 Fed. 839, 45 C.C.A. 666; In re Chapman, D.C., 99 Fed. 395. Such as: insolvency or suffering or permitting a creditor to obtain a preference, Von Segerlund v. Dysart, C.C.A.Cal., 137 F.2d 755, 758, 761; appointment of a receiver, United States v. Emory, 62 S.Ct. 317, 319, 314 U.S. 423, 86 L.Ed. 315; hindering, delaying or defrauding creditors, In re Thompson, D.C.La., 28 F.Supp. 707, 710; failure to discharge a lien, In re Flushing Queensboro Laundry, C.C.A.N.Y., 90 F.2d 601. Permitting creditor to obtain any levy, attachment, judgment, or other lien, In re Day, D.C.Md., 22 F.Supp. 946, 949; assignment for benefit of creditors, In re Roy, D. C.N.H., 46 F.Supp. 952, 954; or a written admission of one's inability to pay his debts, In re Turner, D.C.Ky., 51 F. Supp. 740, 743.

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