Wilbur v. Watson

BROWN, District Judge.

The sole question in this case is whether the assignees under a general assignment, which was itself an act of bankruptcy, are entitled, before paying over to the trustee the proceeds of the sale of the assigned property, to deduct any sum as compensation for their services rendered prior to the filing of the petition in bankruptcy. Such an assignment was constructively fraudulent and in violation of the bankruptcy act, in that it provided for a different mode of administration of the effects of the insolvent debtor than that contemplated by the act. This was the view of…