In re Cunney
In re Cunney
Opinion of the Court
The involuntary petition in this case was filed December 26, 1901, the act of bankruptcy alleged being a voluntary assignment. The adjudication was made June 23, 1902.
The trustee filed a petition praying that the bankrupts be ordered to turn over to him about $15,000. This sum of money the bankrupt James Cunney took from the business shortly before the voluntary assignment made by the firm, with intent to defraud the creditors. He paid $2,500 to his brother Michael in alleged settlement of an outstanding debt; $4,800 he paid to his brother-in-law Malloy in. alleged settlement of another outstanding debt. The sum of $7,200, nearly all that was left, the two bankrupts, according to their testimony, drank
Reference
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- In re CUNNEY
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- Syllabus
- 1. Bankruptcy 136—Summary Proceedings to Compel Bankrupts to Turn Over Property—General Orders—Applicability. General Order XXXVII (89 Fed. xiv, 32 C. C. A. xiv), providing that in proceedings in equity to carry into effect the Bankruptcy Act, or to enforce rights and remedies given by it, the rules of equity practice shall be followed, applies only to equity proceedings properly so called, and not to summary proceedings in bankruptcy to compel bankrupts to turn over property to the trustees, though in summary proceedings the •court will allow the bankrupts full opportunity for hearing and defense, without being limited by technical rules of procedure in equity. [Ed. Note.—For other cases, see Bankruptcy, Cent.. Dig. §§ 233, 235; Dee. Dig. For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes 2. Bankruptcy ©=>136—Summary Proceedings to Compel Bankrupts to Turn Over Property—General Orders—Applicability. Whore the caso of a trustee, in summary proceedings to compel bankrupts to turn over money to him, rests on the testimony of the bankrupts, the court need not, under any formal rule of equity, give credit to statements made in the sworn answer of the bankrupts rather than to their sworn testimony. [Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 233, 235; Doc. Dig. ©=>136.] 3. Bankruptcy ©=>136—Summary Proceedings to Compel Bankrupts to Turn Over Property—General Orders—Applicability. The transcript of a bankrupt’s examination, though unsigned, but proved to be correct, is admissible in evidence in summary proceedings by the trustee to compel the bankrupt to turn over property in his possession, though the examination was unfinished, especially where the bankrupt was afforded opportunity to examine his testimony for correction of errors and to make any addition thereto. [Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 233, 235; Dec. Dig. ©=>136.] 4. Bankruptcy ©=>13G—Compelling Bankrupt to Turn Over Property to Trustee—Burden op Proof. A trustee,- in summary proceedings to compel the bankrupt to turn over assets to the trustee, has the burden of proving by a preponderance of the evidence that the bankrupt had property in his possession or under his control. LI€d. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 233, 235; Dec. Dig. ©=>136.] 5. Bankruptcy ©=>136—Fraudulent Transfer by Bankrupt—Remedy of Trustee. Where a bankrupt made voluntary payments voidable as a preference, the trustee might have his remedy against the persons receiving the money ; but the court could not direct the bankrupt to turn over the money to the trustee. [Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 233, 235; Dec. Dig. ©=>136.] other cases see same topic & KláY -NUMBiiJIt in all Key-Numbered Digests & Indexes