thereof if rejected only in part. (m) The claim of any estate which is being administered in bankruptcy against any like estate may be proved by the trustee and allowed by the court in the same manner and upon like terms as the claims of other creditors. (n) Claims shall not be proved against a bankrupt estate subsequent to one year after the adjudication; or if they are liquidated by litigation and the final judgment therein is rendered within thirty days before or after the expiration of such time, then within sixty days after the rendition of such judgment: Provided, That the rights of infants and insane persons without guardians, without notice of the proceedings, may continue six months longer."1

"Debts of the bankrupt may be proved and allowed against his estate which are (1) a fixed liability, as evidenced by a judgment or an instrument in writing, absolutely owing at the time of the filing of the petition against him, whether then payable or not, with any interest thereon which would have been recoverable at that date or with a rebate of interest upon such as were not then payable and did not bear interest; (2) due as costs taxable against an involuntary bankrupt who was at the time of the filing of the petition against him plaintiff in a cause of action which would pass to the trustee and which the trustee declines to prosecute after notice; (3) founded upon a claim for taxable costs incurred in good faith by a creditor before the filing of the petition in an action to recover a provable debt; (4) founded upon an open account, or upon a contract express or implied; and (5) founded upon provable debts reduced to judgments after the filing of the petition and before the consideration of the bankrupt's application for a discharge, less costs incurred and interests accrued after the filing of the petition and up to the time of the entry of such judgments. (6) Unliquidated claims against the bankrupt may, pursuant to application to the court, be liquidated in such manner as it shall direct, and may thereafter be proved and allowed against his estate." 2

"1. Depositions to prove claims against a bankrupt's estate shall be correctly entitled in the court and in the cause. When made to prove a debt due to a partnership, it must ap

$485. 130 St. at L. 544, 560, 561, $ 57.

2 30 St. at L. 544, 562, 563, § 63; In re Heinsfurter, 97 Fed. R. 198.

pear on oath that the deponent is a member of the partnership; when made by an agent, the reason the deposition is not made by the claimant in person must be stated; and when made to prove a debt due to a corporation, the deposition shall be made by the treasurer, or, if the corporation has no treasurer, by the officer whose duties most nearly correspond to those of treasurer. Depositions to prove debts existing in open account shall state when the debt became or will become due; and if it consists of items maturing at different dates the average due date shall be stated, in default of which it shall not be necessary to compute interest upon it. All such depositions shall contain an averment that no note has been received for such account, nor any judgment rendered thereon. Proofs of debt received by any trustee shall be delivered to the referee to whom the cause is referred. 2. Any creditor may file with the referee a request that all notices to which he may be entitled shall be addressed to him at any place to be designated by the postoffice box or street number, as he may appoint; and thereafter, and until some other designation shall be made by such creditor, all notices shall be so addressed; and in other cases notices shall be addressed as specified in the proof of debt. 3. Claims which have been assigned before proof shall be supported by a deposition of the owner at the time of the commencement of proceedings, setting forth the true consideration of the debt and that it is entirely unsecured, or, if secured, the security, as is required in proving secured claims. Upon the filing of satisfactory proof of the assignment of a claim proved and entered on the referee's docket, the referee shall immediately give notice by mail to the original claimant of the filing of such proof of assignment; and, if no objection be entered within ten days, or within further time allowed by the referee, he shall make an order subrogating the assignee to the original claimant. If objection be made, he shall proceed to hear and determine the matter. 4. The claims of persons contingently liable for the bankrupt may be proved in the name of the creditor when known by the party contingently liable. When the name of the creditor is unknown such claim may be proved in the name of the party contingently liable; but no dividend shall be paid upon such claim, except upon satisfactory proof that it will diminish pro tanto the original

debt. 5. The execution of any letter of attorney to represent a creditor, or of an assignment of claim after proof, may be proved or acknowledged before a referee, or a United States commissioner, or a notary public. When executed on behalf of a partnership or of a corporation, the person executing the instrument shall make oath that he is a member of the partnership, or a duly authorized officer of the corporation on whose behalf he acts. When the person executing is not personally known to the officer taking the proof or acknowledg ment, his identity shall be established by satisfactory proof. 6. When the trustee or any creditor shall desire the re-examination of any claim filed against the bankrupt's estate, he may apply by petition to the referee to whom the case is referred for an order for such re-examination, and thereupon the referee shall make an order fixing a time for hearing the petition, of which due notice shall be given by mail addressed to the creditor. At the time appointed the referee shall take the examination of the creditor, and of any witnesses that may be called by either party, and if it shall appear from such examination that the claim ought to be expunged or diminished, the referee may order accordingly."3

The claim must be specific, and if for several services or payments it must be itemized. A proof of claim may be amended by leave of the court or of the referee upon proof of an error or omission due to inadvertence or a mistake of fact or law."

3 G. O. xxi. Subdivision 6 does not apply to claims for expenses of the administration of the estate. In re Reliance Storage & Warehouse Co., 100 Fed. R. 619. The officer who takes the verification of the claim may be the creditor's attorney, In re Kimball, 100 Fed. R. 777; or a foreign consul, In re Sugenheimer, 91 Fed. R. 744. In the absence of a rule of court which forbids such practice, it is no objection to a claim that it is filed by the attorney for the bankrupt. In re Kimball, 100 Fed. R. 777. The bankrupt may prove against himself a claim which he holds in a representative capacity. Warner v. Spooner, 3 Fed. R. 890. A solvent

partner may prove a claim arising from his payment of a firm debt after the adjudication in bankruptcy, or if such debt has already been proved by the creditor he may be subrogated to his rights. In re Dillon, 100 Fed. R. 627. Cf. infra, $ 487.

4 In re Scott, 93 Fed. R. 418.

5 In re Myers, 99 Fed. R. 691; In re Baxter, 12 Fed. R. 72. The benefit of a lien may thus be preserved. In re Falls City Shirt Mfg. Co., 98 Fed. R. 592. Contra, In re Wilder, 101 Fed. R. 104. A deduction may thus be made of the funds of the bankrupt in the claimant's hands. In re Myers, 99 Fed. R. 592.

8

It seems that the time to file a claim cannot be extended. A creditor, the trustee, or, where no trustee has been appointed, the bankrupt, may object to the allowance of a claim, or move for its re-examination or expurgation. The allowance of a claim by the referee will not be reversed by the court unless manifestly erroneous.10 Upon the re-examination of a claim that has been allowed, it seems that the burden of proof is upon the objector.11 A claim may be disallowed, or if allowed may be re-examined and expunged, because it is barred by the statute of limitations; 12 and because the claimant has joined with it other claims that are fraudulent; 13 but not, it has been held, because it was acquired from the original claimant after the adjudication of bankruptcy for the purpose of controlling the proceedings. Where the petition for the re-examination of a claim is defective for lack of certainty the proper remedy is a motion for a more specific statement, not a motion to strike out part of the petition.15 Mortgages which are void may be put in evidence as admissions of antecedent debts therein described.16

12

"Bray v. Cobb, 100 Fed. R. 270. Not even by the filing of a supplemental petition showing new assets. In re Shaffer, 104 Fed. R. 982.

7 In re Lipman, 94 Fed. R. 353. 8 Atkins v. Wilcox (C. C. A.), 105 Fed. R. 595.

9 In re Ankeny, 100 Fed. R. 614. 10 In re Rider, 96 Fed. R. 811. 11 In re Howard, 100 Fed. R. 630; In re Felter, 7 Fed. R. 904. Cf. In re Ankeny, 100 Fed. R. 614.

12 In re Lipman, 94 Fed. R. 353. 13 In re Flick, 105 Fed. R. 503. 14 In re Headley, 97 Fed. R. 765. 15 In re Ankeny, 100 Fed. R. 614. 16 In re New Brunswick Carpet Co., 4 Fed. R. 514. For cases denying the right of a landlord to prove a claim for rent accruing subsequent to the adjudication, see In re Jefferson, 93 Fed. R. 948: In re Arnstein, 101 Fed. R. 706; Atkyns v. Wilcox (C. C. A.), 105 Fed. R. 595; In re Mahler, 105 Fed. R. 428. A trustee under an insolvent assignment was not allowed to prove a claim for his

compensation and expenses. Stearns v. Flick, 103 Fed. R. 919. It has been held that a claim may be proved upon a contract of indorsement which matures after the adjudication and pending the proceedings, In re Gerson, 105 Fed. R. 891; contra, In re Schaefer, 104 Fed. R. 973; that a claim for services rendered after the adjudication, and pending the proceedings, cannot be proved, and will not be discharged, In re Burka, 104 Fed. R. 326; that a creditor who owes the bankrupt more than the amount of his own claim must pay it before he can make proof against the estate, In re Gerson, 105 Fed. R. 893; that when his principal has been preferred the guarantor can only prove his claim after the surrender of the preference, In re Schmechel Cloak & Suit Co., 104 Fed. R. 64; that a creditor with several claims, one only of which has been preferred, cannot prove any until the preference has been surrendered, In re Teslow, 104 Fed. R.

§ 486. Set-offs and counter-claims.-" (a) In all cases of mutual debts or mutual credits between the estate of a bankrupt and a creditor the account shall be stated and one debt shall be set off against the other, and the balance only shall be allowed or paid. (b) A set-off or counter-claim shall not be allowed in favor of any debtor of the bankrupt which (1) is not provable against the estate; or (2) was purchased by or transferred to him after the filing of the petition, or within four months before such filing, with a view to such use and with knowledge or notice that such bankrupt was insolvent, or had committed an act of bankruptcy."1

2

3

A deposit may be set off against the promissory notes held by the bank which is the depositary. It seems that a surety who pays the debt of his principal after the latter's adjudication in bankruptcy may set off such payment; but it has been held that a person jointly indebted with the bankrupt, who pays the debt after the adjudication, cannot set it off against a debt due by him to the latter, although he is subrogated to the right of the payee to dividends.

4

§ 487. Priorities and liens.-"(a) The court shall order the trustee to pay all taxes legally due and owing by the bankrupt to the United States, State, county, district, or municipality in advance of the payment of dividends to creditors, and upon filing the receipts of the proper public officers for such payment he shall be credited with the amount thereof, and in case any question arises as to the amount or legality of any such tax the same shall be heard and determined by the court. (b) The debts to have priority, except as herein provided, and to be paid in full out of the bankrupt estates, and

229; that no claims can be liquidated except those specified in section 63a, In re Hirschman, 104 Fed. R. 69; and, although the point is doubtful, that preferences more than four months old must be surrendered. Re Arnheim-Steers L. Co., by Referee Olney. But see In re Ratcliff, 107 Fed. R. 80.

486. 130 St. at L. 544, 565, § 68. "If a creditor has been preferred, and afterwards in good faith gives the debtor further credit without security of any kind for property which becomes a part of the debtor's estates,

the amount of such new credit remaining unpaid at the time of the adjudication in bankruptcy may be set off against the amount which would otherwise be recoverable from him." Ibid., § 60.

2 In re Myers, 99 Fed. R. 691. 3 In re Dillon, 100 Fed. R. 627. 4 In re Bingham, 94 Fed. R. 796. As to the right of set-off against a claim for a preferential payment, see In re Seckler, 106 Fed. R. 484; In re Ryan, 105 Fed. R. 760; McKey v. Lee (C. C. A.), 105 Fed. R. 923.