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Insolvency papers document the assignment and sale of property of insolvent debtors and their discharge from liability for debts incurred prior to the insolvency petition. In a voluntary assignment the debtor and a certain proportion of his creditors petitioned for the assignment and sale. In an involuntary assignment one or more creditors petitioned for the attachment and sale of property of an "absconding, concealed, or nonresident debtor." (Nonresident debtors were those residing out of state.) A typical file in a voluntary assignment contains the following documents: petition of the insolvent debtor and his creditors (representing three-fourths or, after 1813, two-thirds of the total amount owed by him) requesting that the insolvent's property be assigned to a trustee for sale; affidavit of each petitioning creditor stating amount of debt; account of debts of the insolvent debtor, with names of debtors and the amounts owed them; account of the real estate and inventory of the personal estate of the insolvent debtor; order to advertise the impending sale of this property, notifying other creditors to show cause why the sale should not be made; affidavit of publication, including clipping of newspaper advertisement, order for assignment of the insolvent's property to trustees for sale for benefit of the creditors; certificate of assignment by trustees (assignees), stating that the property has been delivered to them; and affidavit or report of assignment, discharging the insolvent from further liability for debts incurred prior to the date of his petition.
The statutes governing voluntary assignment of an insolvent's property were Laws of 1786, Chap. 24, and Laws of 1788, Chap. 92. This latter act and subsequent acts, Laws of 1801, Chap. 163, and Laws of 1813, Chap. 98, empowered any justice of the Supreme Court or a court of common pleas, or the chancellor, to receive the petition, make the assignment, and discharge the debtor. Papers in insolvency cases were required to be filed with a Supreme Court clerk, except when a county judge granted the assignment order; in those cases the papers were to be filed with the county clerk. Laws of 1811, Chap. 123 gave Supreme Court commissioners and the recorders of the cities of New York, Hudson, and Albany the same powers in cases of insolvency, as those exercised by Supreme Court justices. Laws of 1817, Chap. 55, and Laws of 1818, Chap. 26, permitted creditors of an imprisoned debtor to petition a court for an assignment, if the debtor agreed to it. (This provision was repealed in 1828.) The Revised Statutes of 1829, Part II, Chap. 5, Title 1, Art. 3, supplanted all previous acts concerning insolvent assignments and required that all voluntary assignment proceedings be brought in a county-level court. Therefore, the Supreme Court clerks did not file any voluntary assignment papers after 1829.
A typical file relating to an "absconding, concealed, or nonresident debtor" includes the following documents: petition by creditors for attachment of debtor's property, itemizing his debts; affidavits of other persons stating that the debtor has absconded or concealed himself; warrant to sheriff to attach the debtor's property; and an appraisal of the real property and inventory of the personal property of the insolvent. Other documents in an involuntary assignment correspond to those found for voluntary assignments: court order appointing trustees to dispose of property, order for and affidavit of publication of notice of sale, and final report of attachment proceedings. The proceedings in involuntary assignments were governed successively by Laws of 1786, Chap. 24; Laws of 1801, Chap. 49; and Revised Statutes of 1829, Part II, Chap. 5, Title 1, Art. 1. Before 1830 case papers in assignment proceedings for "absent and absconding debtors" were filed with the clerk of the court where the proceeding commenced: either the Supreme Court, a county court
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Insolvent's Petition, 1822. Insolvent debtor Abram Camp of Lyons, Wayne County, and his creditors petition the Supreme Court for an order transferring his property to an assignee for sale. Proceeds of the sale were distributed to the creditors, who are named at the bottom of the petition. Insolvency proceedings were numerous; except for two brief periods, there were no federal bankruptcy laws prior to 1898. (Series J0156 Insolvency Papers [Utica].) |
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of common pleas, or the mayor's court in New York City. Starting in 1830 all papers in involuntary assignments were filed with a Supreme Court clerk. however, the proceeding commenced with a petition to a circuit judge, a common pleas judge, a Supreme Court commissioner or counselor, or any city recorder.
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| J0154 |
Insolvency Papers (Albany), 1795-1842. 40.0 cu. ft.
The Albany insolvency papers are arranged alphabetically by name of debtor. There are few files after 1829, and all pertain to "absconding, concealed, or non-resident" debtors.
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| J0156 |
Insolvency Papers (Utica), 1806-47. 5.6 cu. ft.
The Utica insolvency papers are arranged alphabetically by name of debtor. There are few files after 1829, and all pertain to "absconding, concealed, or non-resident" debtors.
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| J2000 |
Insolvency Papers (New York), 1784-1828 (bulk 1786-1815). 8.6 cu. ft.
The New York insolvency papers are for debtors with last names with initial letters from "A" to "T" only.
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