107 F. 674 | W.D. Tenn. | 1901
The petition alleges that the insolvent debtor is insane, but that before he became so he committed the acts of bankruptcy averred therein. It charges a fraudulent sale of his entire stock of goods for an inadequate consideration to one Fish, with intent to hinder and delay his creditors; also that he suffered a fraudulent preference by judicial process of attachment; and that in the attachment proceedings, a receiver having been appointed, the stock of goods is being administered for the benefit of the fraudulently preferred creditor and the fraudulent vendee, the receiver being a brother of the latter. Also that the insolvent debtor’s other property has been picked up here and.there by creditors proceeding against him since lie became insane. It alleges, and the affidavits, show, that the debtor resided at Union City, in this state, and carried on .business there as a merchant for the greater portion of six months preceding the filing of the petition (Act 1898, § 21 [30 Stat. 545]); but that after the transactions aforesaid he went temporarily to the state of Alabama, to visit friends; or for other purposes, and that while there, becoming insane, he was, by proper proceedings, adjudged a lunatic, and confined in an asylum in that state. No committee or guardian was appointed for him there, and none has been appointed for him or for his property in this state, for which reason his property and business affairs have been and are neglected. Process on the petition having been returned that' the defendant was not to be found in 'this district, upon affi
It would be premature- to determine whether one who is insane may be adjudicated bankrupt, for acts committed either before or after the lunacy began. Hill. Bankr. 50, note; Avery & H. Bankr. 36; Coll. Bankr. (3d Ed.) 18; Bump, Bankr. (9th Ed.) 385; In re Funk, 4 Am. Bankr. R. 96, 101 Fed. 211; In re Pratt, 2 Low. 96, 19 Fed. Cas. 1218 (No. 11,371); In re Marvin, 1 Dill. 178, 16 Fed. Cas. 927 (No. 9,178), and note; In re Murphy, 10 N. B. R. 48, 17 Fed. Cas. 1030 (No. 9,946); In re Weitzel, 7 Biss. 289, 29 Fed. Cas. 604 (No. 17,365). So it is needless now to inquire whether there be any distinction between voluntary petitions by the guardian or committee of a lunatic and petitions in invituin by the creditors against the lunatic or his guardian or committee. These defenses
There being no such committee or regular guardian in this case, Mr. A. W. Biggs, an attorney of this court, residing at Trenton, will he appointed guardian ad litem. A copy of the order making this appointment and a copy of the petition will be served on him, and he will be required to plead, answer, demur, or otherwise defend within 10 days from this date. His compensation will be provided for out of the lunatic’s estate, if he be adjudged bankrupt, or the petitioning creditors will be required to pay it as costs if they fail in their petition. And the guardian ad litem has leave to apply for proper orders to pay expenses and costs as he may be advised. Ordered accordingly.