109 F. 621 | E.D. Wis. | 1901
ifhis petition distinctly presents the questions (1) whether the garnishment proceedings were invalidated-by the adjudication in bankruptcy, and, if so (2) whether the bankruptcy court can take jurisdiction to decree accordingly, receive into court the amount payable by the garnishee, and relieve such garnishee from further liability.
1. The answer to the first question appears in the unmistakable terms of section 67 of the bankruptcy act of 1898, which provides “that all levies, judgments, attachments, or other liens, obtained through legal proceedings against a person who is insolvent, at any time within four months prior to the filing of a petition in bankruptcy against him shall be deemed null and void in case he is adjudged a bankrupt,” and that the property affected thereby shall be discharged and released from the same, and pass to- the trustee. That this provision applies equally to voluntary and involuntary cases is settled for this circuit, at least, by the decision of the circuit court .of appeals in Re Richards, 37 C. C. A. 634, 96 Fed. 935, 3 Am. Bankr. R. 145; and it is clear that the garnishment proceeding falls directly within its terms, as recently held by Judge Brown in Re Lesser (D. C.) 108 Fed. 201. See, also, In re Kenney (C. C. A.) 105 Fed. 897, 5 Am. Bankr. R. 355; Coll. Bankr. (3d Ed.) 430. The decisions under the former bankruptcy acts, which are cited by counsel in opposition to the rule herein to show cause, are not applicable to the explicit provision of the present act, as well pointed out in the opinions above cited.
2. The question of administering relief in such case in the bankruptcy court is.not so free from difficulty. While section 67 expressly provides that liens so obtained “shall be deemed wholly discharged and released,” that the property affected “shall pass to the