concerning the conducting of his business, the cause of his bankruptcy, his dealings with his creditors and other persons, the amount, kind, and whereabouts of his property, and, in addition, all matters which may affect the administration and settlement of his estate or the granting of his discharge; but no testimony given by him shall be offered in evidence against him in any criminal proceeding, except such testimony as may be given by him in the hearing upon objections to his discharge: Provided, however, That when the bankrupt is required to attend for examination, except at the first meeting and at the hearing upon objections, if any, to his discharge, he shall be paid actual and necessary traveling expenses for any distance in excess of one hundred miles from his place of residence at the date of bankruptcy: And provided further, That the court may for cause shown, and upon such terms and conditions as the court may impose, permit the bankrupt to be examined at such place as the court may direct whether within or without the district in which the proceedings are pending; and (11) when required by the court, prepare, verify, and file with the court in duplicate a detailed inventory, showing the cost to him of his merchandise or of such other property as may be designated, as of the date of his bankruptcy.

b. Where the bankrupt is a corporation, its officers, the members of its board of directors or trustees or of other similar controlling bodies, its stockholders or members, or such of them as may be designated by the court, shall perform the duties imposed upon the bankrupt by this Act.

As amended July 7, 1952, P.L. 456, 82d Cong., 2d Sess., § 4, so as to authorize the scheduling of business addresses. See the italicized portion of a(8). The previously required scheduling of residences only was a relic strange for even the horse and buggy days.

66

Section 7a(1) originally read: attend the first meeting of his creditors, if directed by the court or a judge thereof to do so, and the hearing upon his application for a discharge if filed."

The italicized portions of (3) and (5) are amendments of 1938.

As amended in 1926 clause (8) read: "Prepare, make oath to, and file in court within ten days after adjudication, if an involuntary bankrupt, and within ten days after the filing of a petition, if a voluntary bankrupt (unless in either case further time is granted), a schedule of his property showing the amount and kind of property, the location thereof, its money value in detail, and a list of his creditors showing their residence, if known; if unknown, that fact to be stated, the amounts due each of them, the consideration thereof, the security held by them, if any, and a claim for such exemptions, as he may be entitled to, all in triplicate, one copy of each for the clerk, one for the referee, and one for the trustee." The present text, introduced by the Chandler Act (1938), further expedites administration by advancing the time of filing schedules and by imposing the filing of a list of creditors as a definite condition precedent to an extension of time for such filing.

The text of (9), added in 1938, was a feature of the Hastings-Michener bill introduced in Congress in 1932.

(10) is an amended form of original (9), which read as follows: and (9) when present at the first meeting of his creditors and at such other times as the court shall order, submit to an examination concerning the conducting of his business, the cause of his bankruptcy, his dealings with his creditors and other persons, the amount, kind, and whereabouts of his property, and, in addition, all matters which may affect the administration and settlement of his estate; but no testimony given by him shall be offered in evidence against him in any criminal proceeding.

"Provided, however, That he shall not be required to attend a meeting of his creditors, or at or for an examination at a place more than one hundred and fifty miles distant from his home or principal place of business, or to examine claims except when presented to him, unless ordered by the court, or a judge thereof, for cause shown, and, the bankrupt shall be paid his actual expenses from the estate when examined or required to attend at any place other than the city, town, or village of his residence."

(11) was enacted in 1938. It has a cognate provision in section 21(1), which creates a prima facie presumption that the sales by the bankrupt during any accounting period under consideration were made at cost to him. These two provisions facilitate turn-over proceedings against a bankrupt. b. Introduced by the Chandler Act (1938).

Sec. 8. (11 U.S.C. § 26.) Death or Insanity of Bankrupts

The death or insanity of a bankrupt shall not abate the proceedings, but the same shall be conducted and concluded in the same manner, so far as possible, as though he had not died or become insane: Provided, that in case of death, the bankrupt's right to exemption, if any, shall be preserved, and if the exempt property has not already been set off or awarded to him, it shall upon application be ordered set off and awarded to the spouse or dependent children surviving at his death to the exclusion of his personal representatives.

As Amended by the Chandler Act (1938). The proviso originally read: "Provided, That in case of death the widow and children shall be entitled to all rights of dower and allowance fixed by the laws of the State of the bankrrupt's residence."

Hull v. Dicks, 235 U.S. 584, 35 S.Ct. 152, 59 L.Ed. 372 (1915), applied Georgia law postponing certain liens to the widow's allowance. Siegel v. Wells, 55 F. 2d 877 (C.C.A.6th, 1932), extended this doctrine in a state where death apart from bankruptcy did not affect liens. This was detrimental to the trustee who has had the status of a lien creditor since 1910. Section 70c, formerly 47a(2). It is supposed that the amendment of 1938 avoids this doctrine and prevents duplication of exemptions through the addition of widows' awards to bankrupts' exemptions. It adheres to the theory of the date of cleavage.

Sec. 9. (11 U.S.C. § 27.) Protection of Bankrupts

A bankrupt shall be exempt from arrest upon civil process except in the following cases: (1) When issued from a court of bankruptcy for contempt or disobedience of its lawful orders; (2) when issued from a State court having jurisdiction, and when served within such State, upon a debt or claim from which his

discharge in bankruptcy would not be a release, and in such case he shall be exempt from such arrest when in attendance upon a court of bankruptcy or engaged in the performance of a duty imposed by this Act.

Sec. 10. (11 U.S.C. § 28.) Apprehension and Extradition of Bankrupts

a.

The court may, during the pendency of a proceeding in bankruptcy, upon application of the receiver, trustee, or a creditor and upon satisfactory proof by affidavit that the examination of such bankrupt is necessary for the proper administration of the estate and that there is reasonable cause to believe that such bankrupt is about to leave the district in which he resides or has his principal place of business to avoid examination, or that he has evaded service of a subpena or of an order to attend for examination, or that, having been served with a subpena or order to attend for examination, he has willfully disobeyed the same, issue to the marshal a warrant directing him to bring such bankrupt forthwith before the court for examination. If, upon hearing the evidence of the parties, it shall appear to the court that the allegations are true and that it is necessary, the court shall fix bail conditioned for his appearance for examination, from time to time not exceeding in all ten days, as required by the court, and for his obedience to all lawful orders made in reference thereto.

b. Whenever any warrant for the apprehension of a bankrupt shall have been issued under this Act, and he shall have been found within the jurisdiction of a court other than the one issuing the warrant, he may be extradited in the same manner as persons under indictment are now extradited from one district to another.

C.

c. Where the bankrupt is a corporation, "bankrupt" for the purposes of this section shall include its officers and the members of its board of directors or trustees or of other similar controlling bodies.

This section was revised by the Chandler Act (1938).

a. This is an amended form of 9b which originally read: "The judge may, at any time after the filing of a petition by or against a person, and before the expiration of one month after the qualification of the trustee, upon satis. factory proof by the affidavits of at least two persons that such bankrupt is about to leave the district in which he resides or has his principal place of business to avoid examination, and that his departure will defeat the proceedings in bankruptcy, issue a warrant to the marshal, directing him to bring such bankrupt forthwith before the court for examination. If upon hearing the evidence of the parties it shall appear to the court or a judge thereof that the allegations are true and that it is necessary, he shall order such marshal to keep such bankrupt in custody not exceeding ten days, but not imprison him, until he shall be examined and released or give bail con ditioned for his appearance for examination, from time to time, not exceed.

ing in all ten days, as required by the court, and for his obedience to all law. ful orders made in reference thereto."

Previously, under this subdivision, the president of a bankrupt corporation could not be detained for examination as to the affairs of the bankrupt cor poration. Ginsberg & Sons v. Popkin, 285 U.S. 204, 52 S.Ct. 322, 76 L.Ed. 704 (1932).

Subdivision b was enacted in its present form by the Chandler Act (1938). It covers the subject matter of original 10a with several changes in form.

Sec. 11. (11 U.S.C. § 29.) Suits By and Against Bankrupts a. A suit which is founded upon a claim from which a discharge would be a release, and which is pending against a person at the time of the filing of a petition by or against him, shall be stayed until an adjudication or the dismissal of the petition; if such person is adjudged bankrupt, such action may be further stayed until the question of his discharge is determined by the court after a hearing, or by the bankrupt's filing a waiver of, or having lost, his right to a discharge, or, in the case of a corporation, by its failure to file an application for a discharge within the time prescribed under this Act: Provided, however, That such stay shall be vacated by the court if, in a proceeding under this Act commenced within six years prior to the date of the filing of the petition in bankruptcy, such person has been granted a discharge, or has had a composition confirmed, or has had an arrangement by way of composition confirmed, or has had a wage earner's plan by way of composition confirmed.

b. The court may order the receiver or trustee to enter his appearance and defend any pending suit against the bankrupt.

C. A receiver or trustee may, with the approval of the court, be permitted to prosecute as receiver or trustee any suit commenced by the bankrupt prior to the adjudication, with like force and effect as though it had been commenced by him.

d. Suits shall not be brought against a person who has acted as a receiver or trustee of a bankrupt estate, upon any matter arising in connection with the administration thereof, subsequent to two years after the estate has been closed.

e. A receiver or trustee may, within two years subsequent to the date of adjudication or within such further period of time as the Federal or State law may permit, institute proceedings in behalf of the estate upon any claim against which the period of limitation fixed by Federal or State law had not expired at the time of the filing of the petition in bankruptcy. Where, by any agreement, a period of limitation is fixed for instituting a suit or proceeding upon any claim, or for presenting or filing any claim, proof of claim, proof of loss, demand, notice, or the like, or where in any proceeding, judicial or otherwise, a period of limitation is fixed, either in such proceeding or by applicable Federal or State law, for taking any action, filing any claim or pleading, or doing

any act, and where in any such case such period had not expired at the date of the filing of the petition in bankruptcy, the receiver or trustee of the bankrupt may, for the benefit of the estate, take any such action or do any such act, required of or permitted to the bankrupt, within a period of sixty days subsequent to the date of adjudication or within such further period as may be permitted by the agreement, or in the proceeding or by applicable Federal or State law, as the case may be.

f. The operation of any statute of limitations of the United States or of any State, affecting the debts of a bankrupt provable under this Act, shall be suspended during the period from the date of the filing of the petition in bankruptcy (1) until the ex-{ piration of thirty days after the date of the entry of an order denying his discharge; or (2) if he has waived or lost his right to a discharge, then until the expiration of thirty days after the filing of such waiver or loss of such right or, in the case of a corporation, if no application for a discharge is filed within the period of six months after the adjudication, then until the expiration of thirty days after the end of such period; or (3) until} thirty days after the dismissal of the bankruptcy proceedings, whichever may first occur,

ני.

Section 11 was amended by the Chandler Act (1938) and by the Act of July 7, 1952, P.L. 456, 82d Cong., 2d Sess., § 5.

a. Originally read: "A suit which is founded upon a claim from which a discharge would be a release, and which is pending against a person at the i time of the filing of a petition against him, shall be stayed until after an ad judication or the dismissal of the petition; if such person is adjudged a bank- { rupt, such action may be further stayed until twelve months after the date of such adjudication, or, if within that time such person applies for a discharge, then until the question of such discharge is determined."Desi za

The proviso, first added by the Chandler Act, was directed against the practice of filing successivę bankruptcy petitions in order to obtain stays. } The amendment of 1952 dropped a requirement that stays be vacated without} reference to prior discharge if the debtor had been adjudicated a bankrupt within six years..

This is coordinated with the contemporaneous amendment of section 14c(5). b. and c. The reference to the receiver dates from 1938. だい .')

d. The original form was: "Suits shall not be brought by or against a trustee of a bankrupt estate subsequent to two years after the estate has been closed." KAO 0 (8) 0

e. The two year period of limitation upon suits brought by receivers and trustees now runs from the date of adjudication, but these officials may also, avail themselves of any longer periods of limitation provided by non-bankruptcy law.

f. Introduced in 1938. See Toucey v. N. Y. Life Ins. Co., 314 U.S, 118, 62 S.Ct. 139, 86, L.Ed. 100 (1941).

Sections 12 and 13 dealing with compositions (11 U.S.C. §§ 30, 31) were by the Chandler Act (1938) "amended and incorporated as" chapters XI, XII, and XIII.