227 F. 1011 | E.D.N.Y | 1915
The bankrupt above named filed voluntary schedules and was adjudicated upon August 1, 1914. Discharge was granted October 30, 1914, and on August 25, 1915, the bankrupt died. On the 30th of July, 1914, the bankrupt, together with his wife, assigned, for a present consideration, to the wife’s sister, certain insurance policies taken out, respectively, in 1902, 1904, and 1906. The premiums were paid by the assignee, so that the policies were in force at the time of the bankrupt’s death, and the company stands ready to pay the amount of the policies over and above certain loans which had been made by the bankrupt and his wife prior to the date of the assignments. The insurance company states that one of these policies had on July 30, 1914, no surrender value, and the other two policies had surrender values aggregating $16.-72. None of these policies were listed in the schedules, and no estate passed into the hands of the trustee.
One of the creditors, who was scheduled, but did not seek to prove a claim in the estate, having learned of the existence of these in
It is true that concealed property, with any accruals or increments belonging to the property, might be recovered from the party guilty of concealing these assets. But if the accruals or benefits would in any event have belonged to_ the parties guilty of the concealment, and if the only damage to the estate was the loss of the surrender value,
But in the present case the position of the assignee is even stronger, for the reason that the parties claim the assignment to have been made by the bankrupt in good faith, for a cash consideration of $100. Inasmuch as the bankrupt is dead, the evidence presented would seem to show at most that the parties were laboring under a mistaken idea as to his right to make the transfer and to leave out of the schedules the details of this transaction. Under such circumstances, the estate could recover only that to which it was rightfully entitled if the persons were placed in their original situation.
The motion to vacate the discharge will therefore be denied.
<&wkey;>For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes
<&wkey;>For other eases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes