Title 7 — Judiciary and Civil Procedure

A partnership, during the continuation of the partnership business, or during its dissolution until final settlement thereof, may be adjudged insolvent, either upon the petition of the partners, or any one of them, or upon petition of two or more creditors of the partnership qual…

The provisions of this Chapter shall apply to associations and corpora- tions and upon the petition of any officer of any association or corporation, duly authorized by the vote of the board of directors or trustees, at a meeting specially called for that purpose, or by the assen…

COL120106 All debts due and payable from the debtor at the time of the adjudication of insolvency, and all debts then existing but not payable until a future time, a discount being made if no interest is payable by the terms of the contract, may be proved against the estate of th…

If the debtor is bound by endorser, surety, bail or guarantor, upon any bill, bond, note or other specialty or contract, or for any debt of any person, and his liability shall not have become absolute until after the adjudication of insolvency, the creditor may prove the same aft…

In all cases of contingent debts and contingent liabilities, contracted by the debtor and not herein otherwise provided for, the creditor may make claim therefor and have his claim allowed, with right to share in the dividends, if the contingency shall happen before order of the …

Any person liable as bail, surety, or guarantor, or otherwise, for the debtor, who shall have paid the debt, or any part thereof, in discharge of the whole, shall be entitled to prove such debt, or to stand in the place of the creditor, if he shall have proved the same, although …

COL120106 Where the debtor is liable to pay rent, or other debt falling due at fixed and stated periods, the creditor may prove for a proportionate part thereof, up to the time of the insolvency, as if the same became due from day to day, and not at such fixed and stated periods.…

In all cases of mutual debts and mutual credits between the parties, the account between them shall be stated, and one debt set off against the other, and the balance only shall be allowed and paid. But no set-off or counterclaim shall be allowed of a claim in its nature not prov…

When a creditor has a mortgage, or pledge of real or personal property of the debtor, or a lien thereon, for securing the payments of a debt owing to him from the debtor, or an attachment or execution on property of the debtor duly recorded and not dissolved under this Title, he …

No creditor, proving his debt or claim, shall be allowed to maintain any suit therefor against the debtor, but shall be deemed to have waived all right of action and suit against him, and all proceedings already commenced or any unsatisfied judgment already obtained thereon shall…

Any person who shall have accepted any preference, having reasonable cause to believe that the same was made or given by the debtor contrary to any provision of this Chapter, shall not be allowed to prove the debt or claim on account of which the preference was made or given, nor…

COL120106 The court may, upon the application of the assignee, or of any creditor, or without any application, before or after adjudication in insolvency, examine upon oath the debtor in relation to his property and estate and may examine any other person tendering or making proo…

An insolvent debtor may offer terms of composition to his creditors after, but not before, he has filed in court a schedule of his property and list of his creditors as provided in this Chapter. An application for the confirmation of a composition may be filed in insolvency court…

A time shall be fixed by the court for the hearing upon an application for the confirmation of a composition, and for the hearing of such objections as may be made to its confirmation. The court shall confirm a composition if satisfied that (1) it is for the best interest of the …

At any time after the expiration of three (3) months from the adjudication of insolvency, but not later than one (1) year from such adjudication, unless the property of the insolvent debtor has not been converted into money, the debtor may apply to the court for a discharge from …

No discharge shall be granted, or if granted, no discharge will be valid: COL120106 1. If the debtor shall have sworn falsely in the affidavit annexed to his petition, schedule, or inventory, or upon any examination in the course of the proceedings in insolvency, in relation to a…

Any creditor opposing the discharge of a debtor shall file his objections thereto, specifying the grounds of his opposition, and after the debtor has filed and served his answer thereto, which pleading shall be verified, the court shall try the issue or issues raised, according t…

If it shall appear to the court that the debtor has in all things conformed to his duty under this Chapter, and that he is entitled under the provisions thereof to receive a discharge, the court shall grant him a discharge from all his debts, except as hereinafter provided, and s…

No debt created by the fraud or embezzlement of the debtor, or by his defalcation as a public officer or while acting in a fiduciary capacity, shall be discharged under this Chapter, but the debt may be proved, and the dividend thereon shall be a payment on account of said debt. …

A discharge, duly granted under this Title, shall, with the exceptions aforesaid, release the debtor from all claims, debts, liabilities, and demands set forth in his schedule, or which were or might have been proved against his estate in an insolvency, and may be pleaded by a si…

If any debtor being insolvent, or in contemplation of insolvency, within thirty (30) days before the filing of a petition by or against him, with a view to giving a preference to any creditor or person having a claim against him or who is under any liability for him, procures any…

If any debtor shall die after the order of adjudication, the proceedings shall be continued and concluded in like manner and with like effect and validity as if he had lived. SOURCE: CCP § 1372.

Pending insolvency proceedings by or against any person, partnership, association, or corporation, no statute of limitations shall run upon a claim of or against the estate of the debtor. SOURCE: CCP § 1373.

Any creditor, at any stage of the proceedings, may be represented by his attorney or duly authorized agent, and the attorney or agent, properly authorized, shall be entitled to vote at any creditors' meeting as and for his principal. COL120106 SOURCE: CCP § 1374.

It shall be the duty of the court having jurisdiction of the proceedings, upon petition and after hearing, to exempt and set apart, for the use and benefit of said insolvent, such real and personal property as is by law exempt from execution, and also a homestead; but no such pet…

The filing of a petition by or against a debtor upon which or upon an amendment of which an order of adjudication in insolvency may be made, shall be deemed to be the commencement of proceedings in insolvency under this Chapter. SOURCE: CCP § 1376.

Upon the filing of either a voluntary or involuntary petition in insolvency, a receiver may be appointed by the court in which the proceeding is pending, at any time before the election of an assignee, when it appears by the verified petition of a creditor that the assets of the …

When an attachment has been made and is not dissolved before the commencement of proceedings in insolvency, or is dissolved by an undertaking given by the defendant, if the claim upon which the attachment suit was commenced is proved against the estate of the debtor, the plaintif…

In all contested matters in insolvency the court may, in its discretion, award costs to either party to be paid by the other, or to either or both parties to be paid out of the estate, as justice and equity may require. In awarding costs, the court may issue execution therefor. I…

If no creditor files written objection, the court may, upon the application of the debtor, if it be a voluntary petition, or of the petitioning creditors if a creditor's petition, dismiss the petition and discontinue the proceedings at any time before the appointment of an assign…

An appeal may be taken to the Supreme Court in the following cases: 1. From an order granting or refusing an adjudication of insolvency and, in the latter case, from the order fixing the amount of costs, expenses, damages, and attorney's fees allowed the debtor; 2. From an order …