Bankrupt
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BANKRUPT. A person who has done, or suffered some act to be done, which is
by law declared an act of bankruptcy; in such case he may be declared a
bankrupt.
2. It is proper to notice that there is much difference between a
bankrupt and an insolvent. A man may be a bankrupt, and yet be perfectly
solvent; that is, eventually able to pay all his debts or, he may be
insolvent, and, in consequence of not having done, or suffered, an act of
bankruptcy. He may not be a bankrupt. Again, the bankrupt laws are intended
mainly to secure creditors from waste, extravagance, and mismanagement, by
seizing the property out of the hands of the debtors, and placing it in the
custody of the law; whereas the insolvent laws only relieve a man from
imprisonment for debt after he has assigned his property for the benefit of
his creditors. Both under bankrupt and insolvent laws the debtor is required
to surrender his property, for the benefit of his creditors. Bankrupt laws
discharge the person from imprisonment, and his property, acquired after his
discharge, from all liabilities for his debts insolvent laws simply
discharge the debtor from imprisonment, or liability to be imprisoned, but
his after-acquired property may be taken in satisfaction of his former
debts. 2 Bell, Com. B. 6, part 1, c. 1, p. 162; 3 Am. Jur. 218.