Act of bankruptcy

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ACT OF BANKRUPTCY. An act which subjects a person to be proceeded against as a bankrupt. The acts of bankruptcy enumerated in the late act of congress, of 19th Aug. 1841, s. 1, are the following: 1. Departure from the state, district, or territory of which a person, subject to the operation of the bankrupt laws, is an inhabitant, with intent to defraud his creditors. See, as to what will be considered a departure, 1 Campb. R. 279; Dea. & Chit. 4511 Rose, R. 387 9 Moore, R. 217 2 V. & B. 177; 5 T. R. 512; 1 C. & P. 77; 2 Bini,. R. 99; 2 Taunt. 176; Holt, R. 175.
     2. Concealment to avoid being arrested. 1 M. & S. 676 ; 2 Rose, R. 137; 15 Ves. 4476 Taunt. R. 540; 14 Ves. 86 Taunt. 176;1 Rose, R. 362; 5 T. R. 512; 1 Esp. 334.
     3. Willingly or fraudulently procuring himself to be arrested, or his goods and chattels, lands, or tenements to be attached, distrained, sequestered, or taken in execution.
     4. Removal of his goods, chattels and effects, or concealment of them to prevent their being levied upon, or taken in execution, or by other process.
     5. Making any fraudulent conveyance, assignment, sale, gift, or other transfer of his lands, tenements, goods, or chattels, credits, or evidences of debt. 15 Wend. R. 588; 5 Cowen, R. 67; 1 Burr. 467, 471, 481; 4 C. & P. 315; 18 Wend. R. 375; 19 Wend. R. 414; 1 Dougl. 295; 7 East, 137 16 Ves. 149; 17 Ves. 193; 1 Smith R. 33; Rose, R. 213.

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exists primarily under the Bankruptcy Act of 1898 and prior federal
consider[ing] additions to the Bankruptcy Act effected by the Frazier-Lemke Act ...
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The first long-lasting piece of bankruptcy legislation in the United States was the 1898 Bankruptcy Act. The 1898 Act was designed to aid creditors in the liquidation of an individual's assets and reorganize insolvent corporations.
Furthermore, they had to overcome prejudices against bankruptcy law brought on by the costliness and inefficiencies of the previous bankruptcy acts. Though these were considerable obstacles, the growth of interstate commerce steadily increased the number of business people who favored a bankruptcy law, and the growth of commercial associations eventually provided them with the means to form a national organization that their predecessors had not had.
The source of this expansive and unique power was codified in the English bankruptcy acts of the 16th, 17th and 18th centuries, (52) which were "centered around the construct of a bankrupt's 'estate.'" (53) Bankruptcy cases began when the Lord Chancellor would issue a "Commission of Bankrupt," naming five commissioners, all of whom were lawyers, to carry out the case.
(62) The Bankruptcy Act of 1898 (Act of 1898) borrowed some provisions from past bankruptcy acts, such as allowing voluntary bankruptcy and involuntary bankruptcy against corporations; however, the Act of 1898 had other substantive and procedural changes that moved bankruptcy law into the twentieth century.
During the nineteenth century, the federal government enacted three bankruptcy laws prior to the 1898 Act: the Bankruptcy Acts of 1800, 1841, and 1867 (p.
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