Title DCD, Debtor & Creditor

§ 168. Power to sue notwithstanding notice. Notwithstanding any such\nnotice, the trustees may sue for and recover, any property or effects of\nthe debtor, and any debts due to him, at any time, before the day\nappointed for the delivery or payment thereof.\n

§ 169. Forfeiture for failure to comply with notice. Every person\nindebted to such debtor, or having the possession or custody of any\nproperty or thing in action, belonging to him, who shall conceal the\nsame, and not deliver a just and true account of such indebtedness, or\nn…

§ 17. Invalid claims. Claims which for want of record or for other\nreasons would not have been valid as against the claims of creditors of\nthe assignor shall not be liens against his estate.\n

§ 170. Warrant on withholding account or property. Whenever the\ntrustees shall show by their own oath, or other competent proof, to the\nsatisfaction of any judge of a county court, or in the county of New\nYork any justice of the supreme court, that there is good reason to\nbe…

§ 171. Examination of person arrested. The judge or justice issuing\nsuch warrant, shall examine every person so brought before him, on oath,\nin the presence of the trustees or any of them, touching all matters\nrelative to the debtor, his dealings and estate, and touching the\…

§ 172. Imprisonment for contumacy. If any person so brought before\nsuch judge or justice, shall refuse to be sworn, or to answer\nsatisfactorily, all lawful questions put to him, or shall refuse to sign\nthe examination, not having a reasonable objection thereto, to be\nallowed…

§ 173. No discharge for defects of form. If any person so committed,\nshall bring a writ of habeas corpus, he shall not be discharged by\nreason of any insufficiency in the form of the warrant of commitment;\nbut the court before whom such person shall be brought, shall re-commi…

§ 174. Penalties for connivance at escape. Any sheriff, constable or\njailer wilfully suffering any person so committed or re-committed,\npursuant to the foregoing sections, to escape, on conviction thereof, in\naddition to any other punishment the court may inflict, shall forfe…

§ 175. Effect of answers on examination. The person so examined, and\nanswering to the satisfaction of the court, shall not be liable to any\npenalty imposed for concealing and not delivering any property, or\npaying any debt; but his answers on such examination, may be given in…

§ 176. Reward to informers. Any person who shall discover to the\ntrustees any secreted effects, property or things in action, belonging\nto such debtor, so that they shall be recovered by them, shall be\nentitled to ten dollars on the hundred dollars, and at that rate, on the\n…

§ 177. Reference of disputed claims. If any controversy shall arise\nbetween the trustees and any other person in the settlement of any\ndemands against such debtor, or of debts due his estate, the same may be\nreferred to one or more indifferent persons, who may be agreed upon …

§ 178. Application for appointment of referee. If such referee or\nreferees be not selected by agreement, then the trustees or the other\nparty to the controversy, provided no action at law is pending arising\nout of any such debts or demands, may serve a notice of their intenti…

§ 179. Appointment of referee. On the day so specified, upon due proof\nof the service of such notice, the judge or justice before whom the\napplication is made may in his discretion proceed to select one or more\nreferees, the same in all respects as they are now selected accor…

§ 18. Effect of orders; power of judge and duties of clerk. All orders\nor decrees in proceedings under this article shall have the same force\nand effect, and may be entered, docketed and enforced and appealed from\nthe same as if made in an original action brought in the court…

§ 180. Entry of order of reference. The judge or justice by whom they\nshall be selected, shall certify such selection in writing. Such\ncertificate, or the written agreement of the parties, shall be filed by\nthe trustees in the office of the clerk where the order appointing th…

§ 181. Powers, duties and compensation of referees. Such referees\nshall have the same powers, and be subject to the like duties and\nobligations, and shall receive the same compensation, as referees\nappointed by the supreme court, in actions pending therein.\n

§ 182. Filing and effect of referees' report. The report of the\nreferees shall be filed in the same office where the order for their\nappointment was entered, and shall be conclusive on the rights of the\nparties, if not set aside by the court.\n

§ 183. Commission to take testimony out of county. When any witness to\nsuch controversy shall reside out of the county where the said trustees\nresided at the time of their appointment, the referee or referees\nappointed to hear said controversy shall have power to issue a\ncom…

§ 184. Sale of property and accounts of trustees. The trustees shall,\nas speedily as possible, convert the estate, real and personal, of such\ndebtor, into money. They shall keep a regular account of all moneys\nreceived by them as trustees; to which, every creditor, or other p…

§ 185. Meeting of creditors and notice thereof. The trustees, within\nfifteen months from the time of their appointment, shall call a general\nmeeting of the creditors of such debtor, by a notice to be published in\nthe same manner, as hereinbefore directed respecting the public…

§ 186. Proceedings at creditors' meetings. At such meeting, or other\nadjourned meeting thereafter, all accounts and demands, for and against\nthe estate of such debtor, shall be fairly adjusted, as far as the same\ncan be ascertained, and the amount of moneys in the hands of th…

§ 187. Payment of disbursements and commissions of trustees. Out of\nthe moneys in their hands, the trustees may first deduct all the\nnecessary disbursements made by them in the discharge of their duty, and\na commission at the rate of five per centum on the whole sum which sha…

§ 188. Preferred debts. They shall pay all debts due by such debtor to\nthe United States, and all debts due by him to persons who, by the laws\nof the United States, have a preference in consequence of having paid\nmoney as sureties of such debtor.\n

§ 189. Distribution of moneys. They shall distribute the residue of\nthe moneys in their hands, among all those who shall have exhibited\ntheir claims as creditors, and whose debts shall have been ascertained,\nin proportion to their respective demands, and without giving any\np…

§ 19. Sale and compromise of claims and property. The judge may, upon\nthe application of the assignee and for good and sufficient cause shown,\nand upon such terms as he may direct, authorize the assignee to sell,\ncompromise or compound any claim or debt belonging to the estat…

§ 190. Preference of debts owing by debtor as trustee. In making such\ndistribution, the trustees shall first pay all debts that may be owing\nby the debtor as guardian, executor, administrator or trustee; and if\nthere be not sufficient to pay all debts of the character above\n…

§ 191. Payment of debts before maturity. Every person to whom a\ndebtor, except one proceeding under the fifth article, shall be indebted\non a valuable consideration, for any sum of money not due at the time of\nsuch distribution, but payable afterwards, shall receive his propo…

§ 192. Set-off of mutual debts or credits. Where mutual credit has\nbeen given by any debtor, except a debtor proceeding under the fifth\narticle of this chapter, and any other person, or mutual debts have\nsubsisted between such debtor and any other person, the trustees may set…

§ 193. No set-off in certain cases. No set-off shall be allowed by\nsuch trustees, of any claim or debt, which shall have been purchased by,\nor transferred to, the person claiming its allowance, which could not\nhave been set off by him, according to the provisions of this arti…

§ 194. Provision for pending actions. If, at the time any dividend is\nmade, any action or proceeding be pending against the trustees, in which\na demand against such debtor may be established, the trustees may retain\nin their hands, the proportion which would belong to such de…

§ 194-a. Provision for contingent or unliquidated liabilities. If, at\nthe time any dividend is made, there shall be a contingent or\nunliquidated claim against the debtor or an outstanding bond,\nrecognizance or undertaking upon which the debtor shall have been\nprincipal, sure…

§ 195. Penalties recovered. All penalties which shall be recovered by\nany trustees, pursuant to the provisions of this article, shall be\ndeemed a part of the estate of the debtor, and shall be distributed as\nsuch among his creditors.\n

§ 196. Subsequent dividends. If the whole of such debtor's estate be\nnot distributed on the first dividend, the trustees shall, within one\nyear thereafter, make a second dividend of all the moneys belonging to\nthe estate of the debtor, then in their hands, among the creditors…

§ 197. Provision for neglectful creditors. Any creditor who shall have\nneglected to deliver to the trustees an account of his demand, before\nthe first, second, third or other dividend, and who shall deliver his\naccount to them before the second, or other subsequent dividend, …

§ 198. Unclaimed dividends. If any dividend that shall have been\ndeclared, shall remain unclaimed by the person entitled thereto for one\nyear after the same was declared, the trustees shall consider it as\nrelinquished, and shall distribute it, on any subsequent dividend, amon…

§ 199. Disposition of surplus. If after settling the estate of any\ndebtor, and after discharging his debts, entitled to a dividend, any\nsurplus shall remain in the hands of his trustees, the same shall be\npaid to such debtor or his legal representatives.\n

§ 2. Jurisdiction of proceedings. The term "judge" when used in this\narticle shall apply equally to a county judge of the county within which\nthe assignment is recorded and to justices of the supreme court, and the\nterm "court" when used in this article shall, in like manner,…

§ 20. General powers of court. Any proceeding under this article shall\nbe deemed for all purposes, including review by appeal or otherwise, to\nbe a proceeding had in the court as a court of general jurisdiction, and\nthe court shall have full jurisdiction to do all and every a…

§ 200. Allowance to debtor. Every debtor who shall be discharged under\nthe third or fourth articles of this chapter shall be allowed the sum of\nfive per centum on the net produce of all his estate, that shall be\nreceived by the assignees, to be paid to him by them, in case su…

§ 201. Accounting by trustees. Within ten days after any dividend made\nby any trustees, they shall render on oath and file with the clerk of\nthe court where the order appointing them was entered an account in\nwriting of all their proceedings in the premises, stating:\n 1. The…

§ 202. Trustees subject to order of court. Such trustees shall be\nsubject to the order of the supreme court, and of the county court of\nthe county in which they were appointed, upon the application of any\ncreditor, or of any debtor in respect to whom they were appointed, in\n…

§ 203. Appointment of substitute trustee. Whenever any trustee shall\nbe removed, or shall die, or become incapacitated to perform his duties,\nthe court which originally appointed such trustee, after giving notice,\nand an opportunity to the creditors to propose proper persons,…

§ 204. Application by trustee for leave to renounce. Any trustee\nappointed pursuant to the provisions of this chapter who shall be\ndesirous of renouncing the trust vested in him, may apply to the court\nfrom whom his appointment was received, for an order to all persons\ninter…

§ 205. Account upon application. Such application shall be accompanied\nby a full, true and just account of all the transactions of such\ntrustees, in that character, and particularly of the property, moneys\nand effects received by him; of all payments made, whether to creditor…

§ 206. Verification of account. To such account shall be annexed the\naffidavit of the trustee, that the said account is in all respects just\nand true, according to the best of his knowledge and belief.\n

§ 207. Order to show cause. The court shall thereupon grant an order,\ndirecting notice to be given to all persons interested in the estate of\nthe debtor, in respect to whom or whose estate such trustee was\nappointed, to show cause on a day, or at a term and at a place therein…

§ 208. Publication of notice. Such notice shall be published, once in\neach week, for four weeks successively, in such newspapers, as such\ncourt shall direct.\n

§ 209. Hearing. On the day appointed for such hearing, and on such\nother days as shall from time to time be appointed, if it shall appear\nthat notice was duly published, the court shall proceed to hear the\nproofs and allegations of the parties.\n

§ 21. Trial, costs and commissions. The court, in its discretion, may\norder a trial by jury or before a referee, of any disputed claim or\nmatter arising under the provisions of this article. It may in its\ndiscretion award reasonable counsel fees and costs, determine which\npa…

§ 21-a. Company pension plans; deductions from wages trust moneys;\npreference. Moneys contributed from wages or salary by an employee or\nformer employee under any retirement system or plan maintained or\noperated by a domestic corporation, association, co-partnership or\njoint…