TITLE LVII INSOLVENCY PROCEEDINGS AND ASSIGNMENTS FOR CREDITORS
CHAPTER 568 INSOLVENCY PROCEEDINGS
Composition
Section 568:52
568:52 Procedure. –
In all cases of insolvency where the debtor's liability exceeds the sum of $300, if the debtor shall, at the first meeting of the creditors or at any subsequent time appointed by the judge, of which legal notice has been given to the creditors, produce an affidavit signed by him and sworn to before the judge of probate of the following tenor, "I, .......... , of .......... , in the county of .......... , do solemnly swear that I have not removed, concealed or secreted any money, papers, securities, effects or property, real or personal, with the intent, purpose or expectation of receiving, directly or indirectly, any benefit or advantage to myself, and that I have not changed or falsified my books of account, deeds or papers relating to my estate, and that I have not sold, pledged, conveyed or transferred any of my property or estate in anticipation of insolvency, or made any conveyance, mortgage, pledge, transfer or payment to any creditor for the purpose of preferring any of my creditors, and that I have not, directly or indirectly, given any creditor or other person any compensation or promise of reward, except reasonable counsel fees for service, and that my assets and liabilities are correctly stated in the schedule filed in the probate office for the county and signed by me"; and at the same time shall also produce an agreement signed by 3/4 in number of his creditors holding 3/4 of all his indebtedness, the debts of each of whom shall exceed $50, in the following form: "We, the undersigned, creditors of .......... , of .......... , in the county of .......... , do hereby agree to accept .......... percent of our actual net claims against ... , the amounts of which are correctly stated against our respective names, in full discharge of the same; and we further declare that we have not received, directly or indirectly, any compensation or promise of future payment beyond the percent herein named". If the judge shall be satisfied that the agreement is signed by the required proportion of the creditors of the debtor, and that the debtor has paid or secured the percentage named in the agreement according to the terms thereof and all the expenses incurred during the proceedings, he shall give the debtor, under the hand and seal of the court, a full discharge of all his debts and liabilities, not specially excepted, contracted prior to the beginning of the proceedings; provided, that such a discharge shall not prevent any creditor who may not have signed such agreement from proving his claim at any time within 2 months from the beginning of the insolvency proceedings, and having the same allowed at the agreed percentage.