Title DCD, Debtor & Creditor

§ 5. Notice to creditors to present claims. The judge may, upon the\npetition of the assignee, authorize him to advertise for creditors to\npresent to him their claims, with the vouchers therefor, duly verified,\non or before a day to be specified in such advertisement, not less…

§ 50. Who may be discharged. An insolvent debtor, who is a resident of\nthe state at the time of presenting his petition, may be discharged from\nhis debts, as prescribed in this article.\n

§ 51. To what court application to be made. Application for such a\ndischarge must be made, by the petition of the insolvent, addressed to\nthe county court of the county in which he resides; or, if he resides in\nthe city of New York, to the supreme court.\n

§ 52. Contents of petition. The petition must be in writing; it must\nbe signed by the insolvent, and specify his residence; it must set\nforth, in substance, that he is unable to pay all his debts in full;\nthat he is willing to assign his property for the benefit of all his\nc…

§ 53. Consent of creditors to be annexed. The petitioner must annex to\nhis petition one or more written instruments, executed by one or more of\nhis creditors, residing in the United States, having debts owing to him\nor them in good faith, then due or thereafter to become due,…

§ 54. Consent of executor, administrator, receiver, or trustee. An\nexecutor or administrator may become a consenting creditor, under the\norder of the surrogate's court from which his letters issued. A trustee,\nofficial assignee, or receiver of the property of a creditor of th…

§ 55. Consent of corporation or joint-stock association. Where a\ncorporation or joint-stock association becomes a consenting creditor,\nits consent must be executed under its common seal, and may be attested\nby any director or other officer thereof, duly authorized for that\np…

§ 56. Consent of partnership. Where a partnership becomes a consenting\ncreditor, the consent may be executed in its behalf, and any affidavit,\nrequired of a creditor in the proceedings, may be made, by either of the\npartners.\n

§ 57. Effect of consent where petitioner is a joint debtor. A\ncreditor's consent does not affect his remedy against any person or\npersons indebted jointly with the petitioner; and the petitioner's\ndischarge has the effect, as between the creditor and the other joint\ndebtors,…

§ 58. Consent of purchaser or assignee of debt. Where a consenting\ncreditor is the purchaser or assignee of a debt against the petitioner,\nor the executor, administrator, trustee, or receiver of such a purchaser\nor assignee, he is deemed, for all the purposes of this article,…

§ 59. Consenting creditor must relinquish security. A creditor who\nhas, in his own name, or in trust for him, a mortgage, judgment, or\nother security, for the payment of a sum of money, which is a lien upon,\nor otherwise affects, real or personal property belonging to the\npe…

§ 6. Bond of assignee. The assignee named in any such assignment\nshall, within thirty days after the date thereof, and before he shall\nhave any power or authority to sell, dispose of or convert to the\npurposes of the trust any of the assigned property, enter into a bond to\nt…

§ 60. Penalty if creditor swears falsely. If a creditor knowingly\nswears, in any proceedings authorized by this article, that the\npetitioner is, or will become, indebted to him, in a sum of money, which\nis not really due, or thereafter to become due; or in more than the true\…

§ 61. Affidavit of consenting creditor. The consent of a creditor must\nbe accompanied with his affidavit, stating as follows:\n 1. That the petitioner is justly indebted to him, or will become\nindebted to him, at a future day specified therein, in a sum therein\nspecified; and…

§ 62. When non-resident creditor to annex accounts and securities. A\nconsenting creditor, residing without the state, and within the United\nStates, must annex to his consent the original accounts, or sworn copies\nthereof, and the original specialties or other written securiti…

§ 63. Petitioner's schedule. The petitioner must annex to his petition\na schedule, containing:\n 1. A full and true account of all his creditors.\n 2. A statement of the place of residence of each creditor, if it is\nknown; or, if it is not known, a statement of that fact.\n 3.…

§ 64. Petitioner's affidavit. An affidavit, in the following form,\nsubscribed and taken by the petitioner before the county judge, or, in\nthe city of New York, before the judge holding the term of the court, at\nwhich the order specified in the next section is made, must be an…

§ 65. Order to show cause. The petition and other papers, specified in\nthe foregoing sections of this article, must be presented to the court,\nand filed with the clerk. The court must thereupon make an order,\nrequiring all the creditors of the petitioner to show cause before …

§ 66. How order published and served. The order must be published and\nserved in the following manner:\n 1. The petitioner must cause a copy thereof to be published in a\nnewspaper, designated in the order, published in the county; and also,\nif one-fourth part of the insolvent'…

§ 67. Hearing. On the day specified in the order, and before any other\nproceedings are taken in the matter, the petitioner must present to the\ncourt, and file with the clerk, proof, to the satisfaction of the court,\nthat the order has been published and served, as prescribed …

§ 68. Putting cause on calendar. Where the insolvent's discharge is\nopposed, the court may direct the special proceeding to be placed upon\nthe calendar for trial. In that case, the parties must appear, and the\nproceedings are the same, as in an action, except as otherwise\npr…

§ 69. Opposing creditor to file specifications, and may demand jury\ntrial. In order to entitle a creditor to oppose the discharge of the\ninsolvent, he must, on the day fixed to show cause, or at such other\ntime as the court may direct, file with the clerk a specification of h…

§ 7. Further security. The judge may, upon his own motion or upon the\napplication of any party in interest, and on such notice as he may\ndirect to be given to the assignor, assignee and surety, require further\nsecurity to be given whenever, in his judgment, the security affor…

§ 70. Opposing creditor to file proofs, if not named in schedule.\nWhere the name of an opposing creditor does not appear in the schedule,\nhe must file, with the specification of his objections, proof, by\naffidavit, that he is a creditor; and, if his debt is not set forth in\n…

§ 71. Proceedings if jurors do not agree. There shall be but one trial\nby jury. If the jurors cannot agree, after being kept together for such\na time as the court deems reasonable, the court must discharge them, and\ndetermine the questions of fact, or those questions as to wh…

§ 72. When insolvent required to produce his non-resident wife. Where\nthe petitioner's wife resides without the state, the court, or a judge\nthereof out of court, may, upon the application of any creditor, make an\norder, requiring the petitioner to bring his wife before the c…

§ 73. Examination of insolvent. At the hearing or trial, the\npetitioner must be examined under oath, at the instance of any creditor,\ntouching his property or debts, or any other matter stated in his\nschedule, or any changes that have occurred in the situation of his\npropert…

§ 74. When insolvent cannot be discharged. In either of the following\ncases, the petitioner is not entitled to a discharge:\n 1. Where it appears, upon the hearing or trial, that, after making the\nschedule annexed to his petition, he has collected a debt or demand, or\ntransfe…

§ 75. When assignment to be directed. An order, directing the\nexecution of an assignment, must be made by the court, where it appears,\nby the verdict of the jury; or, if a jury has not been demanded, or the\njurors have been discharged by reason of their inability to agree, wh…

§ 76. Assignment; contents, and to whom made. The order must designate\none or more trustees, residents of the state; and must direct the\npetitioner to execute, to him or them, an assignment of all his\nproperty, at law or in equity, in possession, reversion, or remainder,\nexc…

§ 77. Trustees, how designated. The trustee or trustees may be\nnominated by a majority in amount of the consenting creditors. If no\nperson is so nominated, one or more persons must be appointed by the\ncourt for the purpose. The nomination may be included in the consent, or\nm…

§ 78. Effect of assignment. The assignment vests in the trustee or\ntrustees all the petitioner's interest, legal or equitable, at the time\nof its execution, in any real or personal property, not exempt by law\nfrom levy and sale by virtue of an execution; and any contingent\ni…

§ 79. When discharge to be granted. Upon the production by the\npetitioner of a certificate of the trustee or trustees, duly\nacknowledged or proved, and certified, in like manner as a deed to be\nrecorded in the county, to the effect, that the insolvent has assigned,\nfor the b…

§ 8. Discharge or removal of assignee; correction of inventory or\nschedule; supplemental inventories or schedules. The judge shall, in the\ncase provided in section four, and may also, at any time, on the\npetition of one or more creditors, showing misconduct or incompetency of…

§ 80. Order to show cause where trustee refuses to give certificate.\nIf a trustee refuses or neglects, upon payment or tender by the\npetitioner of the expense of so doing, to execute or acknowledge a\ncertificate, as prescribed in the last section, or to cause the\nassignment …

§ 81. Proceedings upon return of order. If, upon the return of the\norder, it appears that the assignment has been duly executed, and that\nthe petitioner has duly delivered all his property directed to be\nassigned, and all the books, vouchers, and papers relating thereto,\nwhi…

§ 82. Discharge and other papers to be recorded. The discharge, and\nthe petition, affidavits, orders, schedule, and other papers, upon which\nthe discharge is granted, exclusive of the minutes of testimony, must be\nrecorded in the clerk's office of the county, within three mon…

§ 83. Effect of discharge. Except as prescribed in the next two\nsections, a discharge granted as prescribed in this article, exonerates\nand discharges the petitioner from every debt, due at the time when he\nexecuted his assignment, including a debt contracted before that time…

§ 84. Effect of discharge as to foreign contracts or creditors. In\neither of the following cases, such a discharge does not affect a debt\nor liability, founded upon a contract, unless it was owing, when the\npetition was presented, to a resident of the state; or the creditor h…

§ 85. Effect of discharge as to debts to the United States and the\nstate. Such a discharge does not affect:\n 1. A debt or duty to the United States; or\n 2. A debt or duty to the state, for taxes or for money received or\ncollected by any person as a public officer, or in a fi…

§ 86. Insolvent to be released from imprisonment. If, at the time when\nthe discharge is granted, the petitioner is under arrest, by virtue of\nan execution against his person issued, or an order of arrest made, in\nan action or special proceeding, founded upon a debt or liabili…

§ 87. Discharge, when void. A discharge, granted as prescribed in this\narticle, is void, in either of the following cases:\n 1. Where the petitioner wilfully swears falsely, in the affidavit\nannexed to his petition or schedule, or upon his examination, in\nrelation to any mate…

§ 88. Invalidity may be proved on motion to vacate order of arrest or\nexecution. Where a person, who has been discharged as prescribed in this\narticle, is afterwards arrested by virtue of an order of arrest made, or\nan execution issued, in an action founded upon a debt or lia…

§ 9. Failure to file bond. A failure to file any bond required by or\nunder this article, within the specified time will not deprive the judge\nof his power over the assignee or the trust estate.\n