Summary

Portrait of Robert Cooper Grier Robert Cooper Grier Shawhan v. Wherritt — Opinion of the Court

Hence, when a merchant or trader, by any of these tests of insolvency, has shown his inability to meet his engagements, one creditor cannot, by collusion with him, or by a race of diligence, obtain a preference to the injury of others. Such conduct is considered a fraud on the act, whose aim is to divide the assets equally, and therefore equitably. To prevent these frauds, the English bankrupt laws give the title of the assignee a relation back to the act of bankruptcy, so as to avoid all payments, sales, or contracts made after it.
Source: Wikisource

Portrait of Robert Cooper Grier Robert Cooper Grier Shawhan v. Wherritt — Opinion of the Court

It provides that the assignee shall have the same power to sell and dispose of the property which might be exercised by such bankrupt before or at the time of the bankruptcy declared. If, by the decree in bankruptcy, the property was divested out of the bankrupt from the time of making a fraudulent conveyance, he certainly could have no power to sell or dispose of his property at the time of the bankruptcy declared. If Congress had intended that the decree in bankruptcy should have relation to an act of bankruptcy, they would have employed language indicating such an intention.
Source: Wikisource

Portrait of Robert Cooper Grier Robert Cooper Grier Shawhan v. Wherritt — Opinion of the Court

By the English statute, the process against a bankrupt commenced by the petition of a creditor to the court, alleging the particular act of bankruptcy which the debtor had committed. So by ours. By the English statute and ours of 1800, the proper court, upon the presentation of a petition, appointed, as a matter of course, commissioners to hear and determine the matters of the petition against the debtor, and, if found true, 'to declare him or her a bankrupt.' By our statute of 1841, the petition is heard by the court, and, if true, the bankruptcy is declared by decree of the court.
Source: Wikisource

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