Neugent Garment Co. v. United States Fidelity & Guaranty Co.

(on motion for rehearing). The motion for rehearing presents a question not considered when the case was decided, — that is, whether the bankruptcy of Millard’s Inc. discharged the surety on the bond given to release the debtor’s property from attachment.

The rule is well established that the purpose of sec. 67 (f) of the Bankruptcy Act, so far as it avoids liens obtained through legal proceedings within four months prior to the filing of the petition in bankruptcy, is to secure an equitable distribution of the bankrupt’s assets among his creditors, and that only the trustee and those claiming…