's
estate, and secrete it from those who have a right to seize it for
payment of their debts. The transfers of property covered by the act
are those which the common law regards as fraudulent. If, for example,
at the time of the transfer of his property one is so much indebted
that it will embarrass him in paying his debts, the transfer will be
deemed fraudulent; but a voluntary transfer, made by one who is free
from debt, cannot be impeached by subsequent creditors. The intention
to hinder, delay or defraud creditors is a question of fact to be
ascertained by proper judicial inquiry.

A general assignment for the benefit of creditors is an act of
bankruptcy. Likewise a general assignment for the benefit of creditors
made by the majority of the board of directors and of the stockholders
is an act of bankruptcy. A petition for the appointment of a receiver
of a corporation under a state statute is not an assignment for the
benefit of creditors and therefore is not an act of bankruptcy.

Another act of bankruptcy is to suffer or permit, when one is
insolvent, any creditor to acquire a preference through legal
proceedings. The term preference includes not only a transfer of
property, but also the payment of money within four months from the
time of filing his petition in bankruptcy. It is immaterial to whom
the transfer is made if the purpose be to prefer one creditor to
another. Like a fraudulent transfer the intent to prefer must be
proved, though this may sometimes be presumed, as when the necessary
consequence of a transfer or payment made by an insolvent debtor is to
liquidate the debt of one creditor to the entire or partial exclusion
of others.

Passing to the filing of the petition a voluntary petitioner should
file his petition in the court of bankruptcy in the judicial district
where he has principally resided for the preceding six months. When
there is no estate and no claim has been proved and no trustee has
been appointed, a bankrupt may withdraw his petition on paying the
costs and expenses. The petition must be accompanied by a schedule of
the petitioner's property, showing its kind and amount, location,
money value, and a list of his creditors and their residences when
known, the amount due to them, the security they have, and a claim to
legal exemptions, if having any. After filing a voluntary petition the
judge makes an adjudication. He may do this ex parte, that is without
notice to creditors.

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