Act of Bankruptcy

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Act of Bankruptcy

An action by a debtor that can be a basis for creditors to file a bankruptcy petition against the debtor. Examples of such actions are concealing assets, defrauding creditors, favoring one creditor over another, or admitting in written a willingness to be adjudged bankrupt.

Act of Bankruptcy

An involuntary admission of bankruptcy by a debtor. In general, going into default and consistently missing payments may be considered acts of bankruptcy. Before 1978 in the United States, an act of bankruptcy involved the transfer of assets to another party with the intent to defraud creditors, but this is no longer the case. Upon committing an act of bankruptcy, creditors have the ability to petition to force the debtor into legal bankruptcy.
References in periodicals archive ?
The Bankruptcy Act of 1898 was the first significant piece of
Similarly, the Bankruptcy Acts of 1841 and 1867 gave federal courts jurisdiction over "all matters and proceedings in bankruptcy" and authorized federal courts to appoint bankruptcy commissioners to exercise that jurisdiction.
22) See Bankruptcy Act of 1898 [section]67d ("Liens given or accepted in good faith.
The wording of the clause, as it was in the Corporations Law, was similar to that contained in the Bankruptcy Act 1966 as amended in 1980.
Near the turn of the twentieth century, the United States passed its first permanent bankruptcy act against the backdrop of the rising tide of commercial interest in the American economy and politics.
This concept is not new, however, as cases as far back as 1849 recognize pro rata distribution of the debtor's property to be the main purpose of the Bankruptcy Act.
The Great Depression in the 1930s revealed several problems with the 1898 Bankruptcy Act.
In contrast, the 1898 Bankruptcy Act, although amended many times, remained in effect until it was replaced by the Bankruptcy Reform Act of 1978.
212) This idea was a theory that Congress tried in previous bankruptcy acts to achieve constitutionality by claiming that bankruptcy courts were merely acting on behalf of, and part of, Article III district courts.
Skeel divides the history of bankruptcy law in America into three historical stages: the nineteenth century, the era of the 1898 Bankruptcy Act and the Great Depression, and the modern era of the 1978 Bankruptcy Code.
67) Thus, Congress enacted the Bankruptcy Act of 1898.