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TWENTY-SEVENTH CONGRESS. Sess.I. Ch.9. 1841.

Proviso.

Bankruptssubject to exa-mination underoath.

Perjury.

Such dischargeand certificateto be deemed acomplete dis-charge, unless,

&.C.

Bankrupts fail-ing to obtain adischarge, maydemand a trialby jury, or ap-peal to the cir-cuit court.

Appeal to betried, when andhow.

Decree of dis-charge may bemade, and acertificate grant-ed, upon a cer-tain finding.

Creditors toshare the bank-rupt’s property,how.

Debts to U.States, or formoney paid bysureties, to befirst paid.

act, admit a false or fictitious debt against his estate, he shall not beentitled to any such discharge or certificate; nor shall any person, beinga merchant, banker, factor, broker, underwriter, or marine insurer, beentitled to any such discharge or certificate, who shall become bankrupt,and who shall not have kept proper books of account, after the passingof this act; nor any person who, after the passing of this act, shallapply trust funds to his own use : Provided, That no discharge of anybankrupt under this act shall release or discharge any person who maybe liable for the same debt as a partner, joint contractor, endorser, surety,or otherwise, for or with the bankrupt. And such bankrupt shall at alltimes be subject to examination, orally, or upon written interrogatories,in and before such court, or any commission appointed by the courttherefor, on oath, or, if conscientiously scrupulous of taking an oath,upon his solemn affirmation, in all matters relating to such bankruptcy,and his acts and doings, and his property and rights of property, which,in the judgment of such court, are necessary and proper for the pur-poses of justice; and if in any such examination, he shall wilfully andcorruptly answer, or swear, or affirm, falsely, he shall be deemed guiltyof perjury, and shall be punishable therefor, in like manner as the crimeof perjury is now punishable by the laws of the United States ; andsuch discharge and certificate, when duly granted, shall, in all courtsof justice, be deemed a full and complete discharge of all debts, con-tracts, and other engagements of such bankrupt, which are proveableunder this act, and shall be and may be pleaded as a full and completebar to all suits brought in any court of judicature whatever, and thesame shall be conclusive evidence of itself in favor of such bankrupt,unless the same shall be impeached for some fraud or wilful conceal-ment by him of his property or rights of property, as aforesaid, contraryto the provisions of this act, on prior reasonable notice specifying inwriting such fraud or concealment; and if, in any case of bankruptcy,a majority, in number and value, of the creditors who shall have provedtheir debts at the time of hearing of the petition of the bankrupt for adischarge as hereinbefore provided, shall at such hearing file their writ-ten dissent to the allowance of a discharge and certificate to suchbankrupt, or if, upon such hearing, a discharge shall not be decreed tohim, the bankrupt may demand a trial by jury upon a proper issue tobe directed by the court, at such time and place, and in such manner,as the court may order; or he may appeal from that decision, at anytime within ten days thereafter, to the circuit court next to be held forthe same district, by simply entering in the district court, or with theclerk thereof, upon record, his prayer for an appeal. The appeal shallbe tried at the first term of the circuit court after it be taken, unless,for sufficient reason, a continuance be granted; and it may be heardand determined by said court summarily, or by a jury, at the option ofthe bankrupt; and the creditors may appear and object against a decreeof discharge and the allowance of the certificate, as hereinbefore pro-vided. And if, upon a full hearing of the parties, it shall appear to thesatisfaction of the court, or the jury shall find that the bankrupt hasmade a full disclosure and surrender of all his estate, as by this actrequired, and has in all things conformed to the directions thereof, thecourt shall make a decree of discharge, and grant a certificate, as pro-vided in this act.

Sec. 5. And be it further enacted, That all creditors coming in andproving their debts under such bankruptcy, in the manner hereinafterprescribed, the same being bona fide debts, shall be entitled to share inthe bankrupt’s property and effects, pro rata, without any priority orpreference whatsoever, except only for debts due by such bankrupt tothe United States , and for all debts due by him to persons who, by thelaws of the United States , have a preference, in consequence of having