37

account, or a wilful refusal to explain clearly the condition and situation of his assets," is a ground for the refusal of a bankrupt's discharge.

The discharge will not be refused because the debt due the objecting creditor will not be thereby released.99 The court has the power to deny a discharge upon a ground not stated in the specifications of the objecting creditors; 40 but it may refuse to do so." The order or certificate of discharge should be general in its nature, and not be so drawn as to except from its operation debts excepted by the statute." The certificate of discharge should be withheld until the expiration of ten days from the order, or such further time as may be allowed. the creditors for an appeal. A discharge may be revoked because of the subsequent discovery of articles fraudulently concealed by the bankrupt;" and because of a withdrawal without notice for a consideration of objections filed by certain creditors upon whose opposition the others relied." A discharge in bankruptcy does not release a debt caused by fraudulent and material misrepresentations, or contracted when the debtor knew that he was insolvent and intended not to pay it; nor the obligation to pay alimony, whether in arrears 47 at the time of the adjudication or afterwards falling due. It

re Kamsler, 97 Fed. R. 194; In re Roy, 96 Fed. R. 400; In re Lewin, 103 Fed. R. 852; In re Becker, 106 Fed. R. 54; In re Lowenstein, 106 Fed. R. 51; In re Bemis, 104 Fed. R. 672. It seems that money borrowed to pay the expenses of the bankruptcy proceedings need not be put in the schedules. Sellers v. Bell (C. C. A.), 94 Fed. R. 801.

37 In re Ablowich, 99 Fed. R. 81. Cf. In re Warne, 10 Fed. R. 377; In re Kamsler, 97 Fed. R. 194; In re Bragasa, 103 Fed. R. 936; Bragassa v. St. Louis Cycle Co. (C. C. A.), 107 Fed. R. 77; In re Bemis, 104 Fed. R. 672; Ablowich v. Stursberg, 105 Fed. R. 751; In re Spear, 103 Fed. R. 779; In re Corn, 106 Fed. R. 143.

38 In re Walther, 95 Fed. R. 941. 39 In re Black, 97 Fed. R. 493; In re Thomas, 92 Fed. R. 912.

46

48

40 In re Marshall Paper Co., 95 Fed. R. 419.

41 In re Thomas, 92 Fed. R. 912; In re Hixon, 93 Fed. R. 440; In re Adams, 104 Fed. R. 72.

42 In re Mussey, 99 Fed. R. 71. 43 In re Hirsch, 96 Fed. R. 468. 44 In re Meyers, 100 Fed. R. 775. 45 In re Dietz, 97 Fed. R. 563. 46 Forsyth v. Vehmeyer, 177 U. S. 177; Packer v. Whittier (C. C. A.), 91 Fed. R. 511. But see In re Rhutassel, 96 Fed. R. 597.

47 Ames v. Moir, 138 U. S. 306. 48 Audubon v. Shufeldt, 181 U. S. 575. So of a judgment or order in bastardy proceedings. In re Baker, 96 Fed. R. 954. As to its effect upon a wife's rights in her husband's property in Louisiana, see Fleitas v. Richardson, 147 U. S. 550.

has been held that the discharge releases a debt due by a stock broker or factor for the conversion of the property of his principal.49 It has been said that a judgment in an action for criminal conversation with the plaintiff's wife 50 and a judgment for a breach of a promise of marriage," may be discharged; but that a judgment for seduction cannot; 52 that an unliquidated debt may be discharged; " that the discharge of a corporation will not release its directors or stockholders from any liability that they may have incurred; that a limited judg ment may be taken for that purpose against the corporation; 55 but that otherwise a corporation is entitled to as complete a discharge as an individual.56

53

54

§ 492. Costs and fees.-The courts of bankruptcy have power "to tax costs wherever they are allowed by law, and render judgments therefor against the unsuccessful party, or the successful party for cause, or in part against each of the parties and estates in proceedings in bankruptcy." When a petition in involuntary bankruptcy is "dismissed by the court or withdrawn by the petitioner, the respondent or respondents shall be allowed all costs, counsel fees, expenses, and damages occasioned by such seizure, taking, or detention of such property. Counsel fees, costs, expenses, and damages shall be fixed and allowed by the court, and paid by the obligors in such bond." "In cases of involuntary bankruptcy, when the debtor resists an adjudication, and the court, after hearing, adjudges the debtor a bankrupt, the petitioning creditor shall recover, and be paid out of the estate, the same costs that are allowed to a party recovering in a suit in equity; and if the petition is dismissed, the debtor shall recover like costs against the petitioner."3

2

"Clerks shall respectively (1) account for, as for other fees received by them, the clerk's fee paid in each case and such

49 Chapman v. Forsyth, 2 How. 202; Hennequin v. Clews, 111 U. S. 676; Palmer v. Hussey, 119 U. S. 96. But see Bracken v. Milner, 104 Fed. R. 522. For a case where a trustee was discharged, see Upshur v. Briscoe, 138 U. S. 365.

50 In re Tinker, 99 Fed. R. 79.
51 In re McCauley, 101 Fed. R. 223.
52 In re Maples, 105 Fed. R. 919.
53 In re Hilton, 104 Fed. R. 981.

54 In re Marshall Paper Co., 95 Fed. R. 419.

55 In re Marshall Paper Co. (C. C. A.), 102 Fed. R. 872.

56 Ibid.

§ 492. 130 St. at L. 544, 546, § 2; In re Carolina Cooperage Co., 96 Fed. R. 604.

230 St. at L. 544, 547, § 3.
3 G. O. xxxiv.

other fees as may be received for certified copies of record which may be prepared for persons other than officers; (2) collect the fees of the clerk, referee, and trustee in each case instituted before filing the petition, except the petition of a proposed voluntary bankrupt which is accompanied by an affi davit stating that the petitioner is without, and cannot obtain, the money with which to pay such fees; (3) deliver to the referees upon application all papers which may be referred to them, or, if the offices of such referees are not in the same cities or towns as the offices of such clerks, transmit such papers by mail, and in like manner return papers which were received from such referees after they had been used; (4) and within ten days after each case has been closed pay to the referee, if the case was referred, the fee collected for him, and to the trustee the fee collected for him at the time of filing the petition." 4

"(a) Clerks shall respectively receive as full compensation for their service to each estate, a filing fee of ten dollars, except where a fee is not required from a voluntary bankrupt." (b) Marshals shall respectively receive from the estate where an adjudication in bankruptcy is made, except as herein otherwise provided, for the performance of their service in proceedings in bankruptcy, the same fees, and account for them in the same way, as they are entitled to receive for the performance of the same or similar services in other cases in accordance with laws now in force, or such as may be hereafter enacted, fixing the compensation of marshals." "

"The actual and necessary expenses incurred by officers in the administration of estates shall, except where other provisions are made for their payment, be reported in detail, under oath, and examined and approved or disapproved by the court. If approved, they shall be paid or allowed out of the estates in which they were incurred."7

"In any case in which the fees of the clerk, referee and trustee are not required by the act to be paid by a debtor before filing his petition to be adjudged a bankrupt, the judge,

4 30 St. at L 544, 558, 559, § 51. 530 St. at L. 544, 559, § 52. 630 St. at L. 544, 559, § 52; supra, § 332; In re Woodard, 95 Fed. R. 955;

In re Scott, 99 Fed. R. 401; In re Adams Sartorial Art Co., 101 Fed. R. 215; In re Damon, 104 Fed. R. 775. 730 St. at L. 544, 562, § 62.

at any time during the pendency of the proceedings in bankruptcy, may order those fees to be paid out of the estate; or may, after notice to the bankrupt, and satisfactory proof that he then has or can obtain the money with which to pay those fees, order him to pay them within a time specified, and, if he fails to do so, may order his petition to be dismissed.” 8

"Before incurring any expense in publishing or mailing notices, or in traveling, or in procuring the attendance of witnesses, or in perpetuating testimony, the clerk, marshal or referee may require, from the bankrupt or other person in whose behalf the duty is to be performed, indemnity for such expense. Money advanced for this purpose by the bankrupt or other person shall be repaid him out of the estate as part of the cost of administering the same." The costs of administration include the fees and mileage of witnesses,1o “and one reasonable attorney's fee, for the professional services actually rendered, irrespective of the number of attorneys employed to the petitioning creditors in involuntary cases, to the bankrupt in involuntary cases while performing the duties herein prescribed, and to the bankrupt in voluntary cases as the court may allow." "

11

"(a) Referees shall receive as full compensation for their services, payable after they are rendered, a fee of ten dollars deposited with the clerk at the time the petition is filed in each case, except when a fee is not required from a voluntary bankrupt, and from estates which have been administered before them one per centum commissions on all sums to be paid

8 G. O. XXXV. 9 G. O. X.

10 30 St. at L. 544, 563, § 64; In re Carolina Cooperage Co., 96 Fed. R. 604; supra, § 333.

1130 St. at L. 544, 563, § 64; In re Curtis (C. C. A.), 100 Fed. R. 784; In re Matthews, 97 Fed. R. 772; In re Kross, 96 Fed. R. 816; In re Woodard, 95 Fed. R. 955; In re Carolina Cooperage Co., 96 Fed. R. 950; In re J. W. Harrison Mercantile Co., 95 Fed. R. 123; In re Silverman, 97 Fed. R. 325; In re Burrus, 97 Fed. R. 926; In re Michel, 95 Fed. R. 803; In re Mayer, 101 Fed. R. 695; In re Terrill, 103 Fed.

R. 781; In re Anderson, 103 Fed. R. 854; In re Beck, 92 Fed. R. 889. Where an attorney for a creditor has rendered beneficial services to the estate in a case where the attorney for the trustee has refused to act, or there is no attorney for the trustee, the court may allow him compensation out of the assets. In re Little River Lumber Co., 101 Fed. R. 558. The attorney for a creditor has a lien upon his client's share in the assets which may be liquidated and confirmed by the court with or without a jury trial. In re Rude, 101 Fed. R. 805.

as dividends and commissions, or one-half of one per centum on the amount to be paid to creditors upon the confirmation of a composition. (b) Whenever a case is transferred from one referee to another the judge shall determine the proportion in which the fee and commissions therefor shall be divided between the referees. (c) In the event of the reference of a case being revoked before it is concluded, and when the case is specially referred, the judge shall determine what part of the fee and commission shall be paid to the referee." 12

"(a) Trustees shall receive, as full compensation for their services, payable after they are rendered, a fee of five dollars deposited with the clerk at the time the petition is filed in each case, except when a fee is not required from a voluntary bankrupt, and from estates which they have administered, such commissions on sums to be paid as dividends and commissions as may be allowed by the courts, not to exceed three per centum on the first five thousand dollars or less, two per centum on the second five thousand dollars or part thereof, and one per centum on such sums in excess of ten thousand dollars. (b) In the event of an estate being administered by three trustees instead of one trustee or by successive trustees, the court shall apportion the fees and commissions between them according to the services actually rendered, so that there shall not be paid to trustees for the administering of any estate a greater amount than one trustee would be entitled to. (c) The court may, in its discretion, withhold all compensation from any trustee who has been removed for cause.

29 13

493. Jurisdiction in bankruptcy of the Circuit Courts.The Circuit Courts of the United States have no jurisdiction in bankruptcy. They "have jurisdiction of all controversies at

12 30 St. at L. 544, 556, § 40. See In re Carolina Cooperage Co., 96 Fed. R. 950; In re Ft. Wayne, etc. Corp., 94 Fed. R. 109; In re Barber, 97 Fed. R. 547; In re Tebo, 101 Fed. R. 419; In re Troth, 104 Fed. R. 291.

13 30 St. at L. 544, 557, 558, § 48; In re T. L. Kelly Dry Goods Co., 102 Fed. R. 747. It has been said that it is the duty of the creditors to elect an attorney for the trustee at the meeting where the trustee is

chosen; and that if they fail to do so the referee may authorize the trustee to employ one. In re Little River Lumber Co., 101 Fed. R. 558. As to the compensation of the attorney for the trustee, see Meddaugh v. Wilson, 151 U. S. 333; In re Stotts, 93 Fed. R. 438; In re Treadwell, 23 Fed. R. 442; In re Cook, 17 Fed. R. 328; In re Barnes, 18 Fed. R. 158. As to fees of receivers in bankruptcy, see In re Scott, 99 Fed. R. 404.