46 Ga. App. 231 | Ga. Ct. App. | 1933
On January 24, 1931, there came into the hands of the clerk of the municipal court of Macon certain funds of Shouse by virtue of a garnishment proceeding instituted by Blood-worth on a judgment and fi. fa. against Shouse. This judgment and fi. fa. was paid off by the clerk and there remained in his hands of this fund $99.34. Gober filed a petition in that court setting up
The defendants in error moved to dismiss the bill of exceptions in this casej upon the ground that the plaintiff in error sued out one bill of exceptions to the dismissal of his petition for cer
The ruling in the second headnote does not require elaboration.
Did the judge of the municipal court of Macon err when he refused to stay the money-rule proceeding on the pleas of the defendant that he had been adjudicated a bankrupt and that the judgment debts with which' the creditors were seeking the funds in the hands of the clerk were dischargeable in bankruptcy? As was said by this court in Ferguson v. Converse Co., 45 Ga. App. 305 (164 S. E. 449), “It is the recognized practice in the State courts to stay proceeding pending in those courts in all cases wherein pleas of bankruptcy are properly filed, at least until the question of the bankrupt’s right to a discharge has been determined.” Pending a bankruptcy proceeding and before the discharge, a bankrupt may plead to any suit pending at the time of his adjudication, or subsequently brought, a suggestion of the bankruptcy, and ask a stay in the State court until the question of his discharge has been finally determined in the Federal court. Baltimore Bargain House v. Busby, 143 Ga. 734 (85 S. E. 875), et seq; Adams v. McLendon, 30 Ga. App. 559 (118 S. E. 497). It is for the United States courts, and not the State courts, to determine whether a bankrupt is entitled to a discharge or not; and where in a State court, pending the bankruptcy proceedings, a money-rule is brought against the clerk of the State court, asking that certain money of the bankrupt in the hands of the clerk by virtue of garnishment proceedings instituted after the adjudication of the defendant as a bankrupt be applied to the settlement of a judgment debt, and the bankrupt pleads the adjudication and alleges that the judgment debt was duly scheduled and is dischargeable in bankruptcy, and prays for a stay of the proceedings on the money-rule until the question of his discharge has been finally determined in the Federal court, it is error for the court to refuse to stay such proceedings. Brady v. Shouse, supra. It follows that the judge of the superior court erred in dismissing the bankrupt’s petition for certiorari, which complained of the action of the trial court in refusing to stay the proceedings pending 'the bankruptcy proceedings.
Judgment reversed.