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section 67, subd. i, providing that when a creditor whose claim against the bankrupt is secured by the individual undertaking of any person fails to prove such claim, such person may do so in the creditor's name, and, if he discharge such undertaking, he shall be subrogated to the rights of the creditor.

Appeal from special term, Delaware county.

Action by Orrin W. Smith against Marvin D. Wheeler. From a judgment on a decision dismissing the complaint, plaintiff appeals. Affirmed.

On the 19th of November, 1896, the defendant executed and delivered to the plaintiff his promissory note dated that day for $550.19, payable to the order of plaintiff four months from the date thereof at the Delaware National Bank. The note was given for a debt on contract then due from de fendant to the plaintiff. It was duly endorsed and transferred by the

DEBTS BARRED BY DISCHARGE IN BANKRUPTCY,-continued.

with the name of the creditor if known to the bankrupt, unless such cred itor had notice or actual knowledge of the proceedings in bankruptcy; or (4.) Were created by fraud, embezzlement, misappropriation or defal· cation while acting as an officer or in any fiduciary capacity.

U. S. Act of 1867. Sec. 33. That no debt created by the fraud or embezzle ment of the bankrupt or by his defalcation as a public officer, or while act ing in a fiduciary character, shall be discharged under this act.

b. In general.

The question how a discharge affects particular debts is not to be de termined at the time the discharge is asked for but subsequently when the bankrupt is sued on that debt and sets up the discharge as a defense. Matter of Thomas, 1 Am. B. R. 515. (1899.)

Matter of Rhutassel, 2 Am. B. R. 697. (1899.)
Matter of Carmichael, 2 Am. B. R. 815. (1899.)

Unless a debt of the bankrupt falls clearly within one of the exceptions included in section 17 of the bankruptcy act, he will be discharged from it. Where the debt was not proven in bankruptcy proceedings and upon a prior proceeding under a state insolvency law it was proven and discharge of debtor refused, the court held that the debt was discharged by the federal proceeding.

Dean v. Justices of the Municipal Court, 2 Am. B. R. 163. (1899.)

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plaintiff to the bank above named, was not paid at maturity, and was duly protested. The bank afterwards brought an action in the supreme court on the note against both parties, and on the 16th day of August, 1897, duly recovered a judgment against them for the sum of $586 damages and costs. An execution was issued thereon, and on the 31st day of October, 1898, the plaintiff paid the amount thereof, being the sum of $650.39. That amount the plaintiff in thi saction seeks to recover of the defendant. On the 18th day of August, 1898, the defendant filed in the proper court his petition in bankruptcy, and was on that day adjudicated a bankrupt. In the schedule of liabilities attached to the petition there was a statement of the judgment recovered bythe bank. On the 7th day of February, 1899, a discharge was duly granted the defendant, pursuant to the act of Congress on that subject then in force. The defendant set up the discharge as a defense to this action. Th court held the defense a good one, and dismissed the complaint.

Argued before PARKER, P. J., and KELLOGG, Edwards, MERWIN, and SMITH, JJ.

C. L. Andrus, for appellant.

Arthur More, for respondent.

DEBTS BARRED by Discharge in BANKRUPTCY,—continued.

A judgment obtained, against the bankrupt in an action for criminal conversation is not affected by his discharge in bankruptcy.

Matter of Tinker, 3 Am. B. R. 580. (1900.)

Liability to pay alimony is not released by a discharge in bankruptcy.
Matter of Smith, 3 Am. B. R. 67. (1899).

People v. Grell, 99 St. Rep. 522; 65 Supp. 522.
Matter of Houston, 2 Am. B. R. 107. (1899).
Matter of VanOrden, 2 Am. B. R. 801. (1899).

(1900).

The bankrupt may waive the discharge and allow judgment to be recovered against him for the original debt.

Dewey v. Moyer, 16 N. B. R. 1. (1877).

Where a judgment has been obtained against a bankrupt in an action, brought subsequent to his adjudication, in which action he failed to plead his discharge, the court has no right to grant relief.

Matter of Ferguson, 16 N. B. R. 530. (1875).

A judgment recovered pending the bankruptcy proceedings, in an action begun before, and based upon a provable debt, is released by a discharge of the judgment debtor in bankruptcy.

Matter of Stansfield, 16 N. B. R. 268. (1877).

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MERWIN, J. The question here is whether the discharge is a bar to the claim of the plaintiff. A discharge in bankruptcy releases a bankrupt from all of his provable debts, with certain exceptions, not important here. Section 17, Bankr. Act 1898. If the claim of the plaintiff was a provable debt within the meaning of the bankrupt act, then the discharge is a bar. By subdivision “i” of section 57 of the act it is provided as follows:

"Whenever a creditor, whose claim against a bankrupt is secured by the individual undertaking of any person, fails to prove such claim, such person may do so in the creditor's name, and if he discharge such undertaking in whole or in part he shall be subrogated to that extent to the rights of the creditor."

In the bankrupt act of 1867 (chapter 176, § 19 [Rev. St. § 5070]) there was a similar provision, and under it it was held in Hunt v. Taylor, 108 Mass. 508, that the liability of the

DEBTS BARRED BY DISCHARGE IN BANKRUPTCY,-continued.

A debt for the purchase money of land is barred by the discharge.
Hoskins v. Wall, 17 N. B. R. 314. (1877).

A discharge in bankruptcy may be set up, in an action to set aside a conveyance in fraud of creditors, in bar of a personal judgment against the bankrupt other than a subjection of the property, but it is not good as a general defense to such an action.

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Where the bankrupt, by the terms of a lease, has agreed to pay rent at stated periods, the discharge in bankruptcy releases him from the liabil ity for the proportionate part of the rent up to the time of the bankruptcy proceedings but not as to the part growing due thereafter.

Treadwell v. Marden, 18 N. B. R. 353. (1877).

Robinson v. Pesant, 8 N. B. R. 426. (1873).

If a discharge may be a bar to a debt, a suit at law to collect the same must be stayed until the bankruptcy proceedings are determined, providing such application for discharge has been prosecuted with reasonable diligence.

Matter of Archenbrown, 11 N. B. R. 149.

(1875).

A discharge in bankruptcy will release a judgment for breach of promise to marry obtained against the bankrupt.

Matter of McCauley, 4 Am. B. R. 122. (1900).

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drawee upon a bill of exchange accepted and dishonored by him to an indorser who then pays it is barred by a discharge of the drawee in bankruptcy proceedings begun after his dishonor of the bill, though before the payment by the indorser. The action in that case was for money paid to the defendant's use. In · Mace v. Wells, 7 How. 272; 12 L. ed. 698, a similar provision in the bankrupt act of 1841 was under consideration, and it was held that the bankrupt was discharged by his certificate from all liability to the surety for money subsequently paid on account of the debt. These authorities are quite persuasive, if not controlling, on the question before us. No different rule was, I think, intended to be adopted by the act of 1898, although the wording of the provision differs in some respects from the prior acts. See Lowell, Bankr. 132, 316, 465. It must be held, I think, that the claim of the plaintiff was provable under the bankrupt act, and that, therefore, the discharge is a bar. Judgment affirmed, with costs. All concur.

DEBTS BARRED BY DISCHARGE IN BANKRUPTCY,--continued.

An unliquidated claim that might have been liquidated and proved against the bankrupt, but which was voluntarily withheld for more than fifteen months after adjudication should be treated as a provable debt and so barred by the discharge.

Matter of Hilton, 4 Am. B. R. 774. (1900).

A judgment obtained against the bankrupt by a father for damages for the loss of services of his daughter by reason of her seduction by the defendant is not a judgment in an action "for willful and malicious injuries to the person or property of another" as prescribed by section 17 of the Bankruptcy Act of 1898.

Matter of Sullivan, 2 Am. B. R. 30. (1899).

Where a judgment is entered in an action for a personal tort, after the commencement of the bankruptcy proceedings, upon a verdict rendered theretofore, it is not a provable debt.

Black v. McClelland, 12 N. B. R. 481. (1875).

The discharge of a corporation does not affect the secondary liability of

its directors.

Matter of Marshall Paper Co. 2 Am. B. R. 653. (1899).

DEBTS BARRED BY DISCHARGE IN BANKRUPTCY,-continued.

A discharge of a principal, which terminates a case pending in a state court against him, also releases a surety on the appeal in the case. Odell v. Wootten, 4 N. B. R. 183. (1868).

A discharge does not affect the liability of a guardian to his ward.
Matter of Maybin, 15 N. B. R. 468. (1876).

A claim arising from a wrongful conversion of personal property is released by the discharge of the debtor in bankruptcy.

Cole v. Roach, 10 N. B. R. 288. (1874).

c. Debts created by fraud.

Section 17 of the bankruptcy act embraces only judgments for frauds etc., and cannot be extended to include claims not in judgment or judg ments based on contract, express or implied.

Matter of Rhutassel, 2 Am. B. R. 697. (1899).

The word "fraud” means moral turpitude or intentional wrong.
Matter of Blumberg, 1 Am. B. R. 633. (1899).

Neal v. Clark, 95 U. S. 704. (1877).

A debt must be actually founded upon fraud in order not to be released by a discharge in bankruptcy.

Matter of Blumberg, 1 Am. B. R. 633. (1899).

Brown, Randall & Co. v. Broach, 16 N. B. R. 296. (1876).

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Where the bankrupt obtained a loan of money from a bank, by false representations as to the amount of property owned by him, and gave his promissory note, a judgment obtained upon the note does not fall within the section 17 of the bankruptcy act which declares that a "judgment in an action for fraud or obtaining property by false pretenses or false representations" is not released by a discharge in bankruptcy.

Matter of Rhutassel, 96 Fed. 597. (1899).

Where one of the debts of the bankrupt was created by fraud, such fraud is not sufficient for refusing a general discharge, where such debt would not be released thereby.

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That the debt was created by fraud may be shown although judgment

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