Legal Definition and Related Resources of Act of bankruptcy
Meaning of Act of bankruptcy
An act which subjects a person to be proceeded against as a bankrupt. The acts of bankruptcy enumerated in the bankruptcy act of 1898, § 3, are (1) concealment, transfer, or removal of property with intent to hinder, delay, or defraud creditors; (2) transfer of property while insolvent, with intent to give a preference; (3) permitting, while insolvent, a creditor to obtain a preference by legal proceedings, and not vacating such preference within five days; (4) making a general assignment for the benefit of creditors; (5) admitting, in writing, inability to pay debts, and willingness to be adjudged a bankrupt.
What does Act of bankruptcy mean in American Law?
The definition of Act of bankruptcy in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:
Prior to the Bankruptcy Reform Act of 1978, a debtor had to have committed or allowed, within four months of the creditors’ petition, one or more of a list of six acts before he could be involuntarily thrust into bankruptcy proceedings. The acts were (1) fraudulent conveyance; (2) preference; (3) suffering an involuntary lien on his property (and not having it removed within 30 days); (4) assignment for benefit of creditors; (5) involuntarily permitting the appointment of a third party to take charge of his property; (6) admitting in writing his inability to pay debts as they mature and his willingness to be adjudged bankrupt. Lawyers would sometimes make shorthand references in the form “He committed the second act” as a way of describing the debtor’s action. The 1978 Act abolished the requirement of an act of bankruptcy as a precondition to an involuntary bankruptcy proceeding.
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Act Of Bankruptcy in the Dictionary | Act Of Bankruptcy in our legal dictionaries | Browse the Legal Thesaurus | Find synonyms and related words of Act Of Bankruptcy |
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Related topics | Act Of Bankruptcy in the World Encyclopedia of Law |
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This definition of Act Of Bankruptcy Is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.
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