showing the amount and kind of property, the location thereof, its money value in detail, and a list of his creditors, showing their residences, if known; if unknown, that fact to be stated; the amounts due each of them, the consideration thereof, the security held by them, if any, and a claim for such exemptions as he may be entitled to, all in triplicate, one copy of each for the clerk, one for the referee, and one for the trustee; and "(9) When present at the first meeting of his creditors, and at such other time as the court shall order, submit to an examination concerning the conducting of his business, the cause of his bankruptcy, his dealings with his creditors and other persons, the amount, kind, and whereabouts of his property, and, in addition, all matters which may affect the administration and settlement of his estate; but no testimony given by him shall be offered in evidence against him in any criminal proceeding. "Provided, however, That he shall not be required to attend a meeting of his creditors, or at or for an examination at a place more than one hundred and fifty miles distant from his home or principal place of business, or to examine claims except when presented to him, unless ordered by the court, or a judge thereof, for cause shown, and the bankrupt shall be paid his actual expenses from the estate when examined or required to attend at any place other than the city, town, or village of his residence. § 876. (Bankruptcy, Sec. 86.) Duty to submit to examinations. (Note: A bankrupt must submit to examination by the creditors as set forth in section 7 of the act quoted above. The right of examination is to be liberally construed. Other witnesses may be called and must answer material questions. A bankrupt or any witness need not answer questions whose answers might tend to incriminate him, notwithstanding the provision of the law that the testimony shall not be offered against him in any criminal proceeding. To take away from him the protection of the federal provision against self-incriminating evi dence there would have to be complete statutory immunity. But a bankrupt who relies upon the statutory privilege and does not answer can be refused his discharge.) §§ 877, 878. (Bankruptcy, Secs. 87, 88.) Protection of bankrupt from arrest in civil cases detention of the bankrupt. (Note: By sections 9 and 10 of the bankruptcy act the bankrupt is protected from arrest in civil cases, and his detention for bankruptcy purposes is provided for. It is provided that a bankrupt is exempt from arrest upon civil process, except (1) When issued from a court of bankruptcy for contempt or disobedience of its lawful orders; (2) When issued from a state court upon a non-dischargeable debt or claim, and even in such cases he is exempt from arrest while in attendance upon the bankruptcy court or engaged in the performance of a duty imposed by the act. It is also provided that a bankrupt may be detained within the jurisdiction if it appears that he is about to leave to avoid examination. If necessary to extradite him, section 9 provides for extradition proceedings.) § 879. (Bankruptcy, Sec. 89.) Offenses of bankrupt created by Bankruptcy Act. (Note: By section 29 of the bankruptcy law the following offenses that may be committed by a bankrupt are defined: (1) Concealing while a bankrupt, or after his discharge, from the trustee, any property belonging to the estate in bankruptcy; (2) Making a false oath or account in bankruptcy. Other offenses are provided for that are applicable to trustees, claimants, and others. A bankrupt may be also guilty of contempt of court for refusal to obey its lawful orders.) § 880. (Bankruptcy, Sec. 90.) The bankrupts (Note: Bankrupt's Exemptions: (1) What they are: The debtor is allowed those exemptions which are permitted by the law of the state. Thus one bankrupt may have more liberal exemptions than another. (2) Bankrupt must claim exemptions. The bankrupt must schedule assets which are exempt, and then claim his exemptions in his schedules. Otherwise he waives them. (3) Trustee has no title to the exemptions, his duty being to set them off to the bankrupt. The trustee takes no title to the exemptions when they are duly claimed. They belong to the bankrupt. (4) Conversion of non-exempt into exempt assets prior to bankruptcy. A debtor may lawfully change non-exempt assets into exempt assets, even if insolvent, and thus put them out of the reach of creditors; as where he invests in a homestead allowed as an exemption by the local law; but such transfers may be in fact fraudulent as where a debtor preceding bankruptcy received payments in the course of business and instead of depositing them from day to day as had been his wont, retained them upon his person or in a vault and purchased a valuable homestead which he moved his family in one month before bankruptcy. Held: fraudulent and not allowed. Kangas v. Robie, (C. C. A. 8th Cir.) 264 Fed. 92.) CHAPTER 111 DISCHARGE A. The Discharge of the Bankrupt. § 881. Importance of discharge. § 882. Within what time discharge must be applied for. (Note: It is probably believed by many persons that filing a petition in bankruptcy discharges one of his indebtedness. It will be seen in this chapter that an affirmative move to obtain a discharge is necessary and that upon such motion the discharge may be for various reasons refused. In case of which refusal the bankrupt continues liable for his debts, less any dividends that may have been paid upon them.) § 882. (Bankruptcy, Sec. 92.) Within what time dis charge must be applied for. (Note: Discharge must be applied for after the expiration of one month and within the next twelve months subsequent to the adjudication; if unavoidably prevented from filing his application within such time, and it so appears to the judge, the application for discharge may be filed within, but not after, the next six months. B. A. Sec. 14a.) § 883. (Bankruptcy, Sec. 93.) The petition for a discharge. (Discharges are applied for upon Official Form, 57. The creditors are entitled to 30 days notice. B. A. Sec. 58.) § 384. (Bankruptcy, Sec. 94.) Filing objections to discharge. (Note: The trustee or other parties in interest may file objections to discharge. These objections must be based upon the grounds for refusing discharge considered in the following section. The trustee cannot himself file the objections unless "he shall be authorized so to do at a meeting of creditors called for that purpose." Sec. 14b.) § 885. (Bankruptcy Act, Sec. 95.) Grounds for refusing discharge. The judge shall discharge the applicant unless he has (1) "committed an offense punishable by imprisonment as herein provided." (See Sec. 879, supra.) (2) or unless he has "with intent to conceal his financial condition, destroyed, concealed or failed to keep books of account or records from which such condition might be ascertained." (3) or, unless he has "obtained money or property on credit from any person upon a materially false statement in writing made by him to such person or his representative for the purpose of obtaining credit from such person;" (4) or, unless he has "at any time subsequent to the first day of the four months immediately preceding the filing of the petition transferred, removed, destroyed or concealed, or permitted to be removed or destroyed or concealed any of his property with intent to hinder, delay or defraud his creditors;" (5) or unless he has "in voluntary proceedings been granted a discharge in brankruptcy within six years;" (6) or unless he has "in the course of the proceedings in bankruptcy refused to obey any lawful order of or to answer any material question approved by the Court." B. Debts not Dischargeable. § 886. In general. § 887. General rule. § 888. Debts not affected by a discharge. § 889. New promise to pay. §§ 886, 887. (Bankruptcy, Secs. 96, 97.) (Note: If the bankrupt obtains his discharge, then the question is: What debts does his discharge affect? We have seen |