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Bankruptcy, act of

Bankruptcy proceedings may be begun only when there is proof that the debtor has committed an act of bankruptcy. These are: (1) a conveyance or assignment of one’s property to a trustee for the benefit of creditors generally; (2) a fraudulent conveyance, gift, etc., of any part of one’s property, with intent to defraud any creditor; (3) a conveyance or transfer that would be a fraudulent preference if one were adjudged bankrupt; (4) intent to defeat or delay creditors by departure from the country, remaining out of the country if already there, absenting oneself from one dwelling house, or beginning to keep house; (5) seizure and sale of goods, or holding for twenty-one days by the sheriff after execution has been levied against the debtor(6) the debtor’s filing in court of a declaration of inability to pay his debts; (7) presentation of a bankruptcy petition bv the debtor; (8) final judgment for a creditor against a debtor for any amount and the serving of a bankruptcy notice, which is not implied with for any good reason (e.g. a counter-claim); (9) notice by the debtor to any creditor that he has suspended payment of debts.

Reference: The Penguin Business Dictionary, 3rd edt.