United States v. Gotwals

11 U.S.C.A. § 21, in part reads:

“a. Acts of bankruptcy by a person shall consist of his having * * * (2) transferred, while insolvent, any portion of his property to one or more of his creditors with intent to prefer such creditors over his other creditors; * *

Under the facts, it is clear that the assignment to Gotwals constituted an act of bankruptcy.

But 31 U.S.C.A. § 191, does not create any lien.1 It is a priority statute. It presupposes a distribution of the debtor’s property and does not apply while the property is in the hands of the debtor.2

The assignment was made on October 27, 1942.…