TITLE 10

Courts and Judicial Procedure

Special Proceedings

CHAPTER 73. INSOLVENCY

Subchapter II. Proceedings Under Assignment


A deed of assignment, executed pursuant to § 7312 of this title, shall be deemed to be a record of the court in which it is executed. A certified copy thereof shall be competent evidence.

Code 1852, § 2702; Code 1915, § 4626; Code 1935, § 5084; 10 Del. C. 1953, § 7321.;

The assignment shall vest in the trustee or trustees therein named, all the property and estate of the petitioner at the time of executing the same, real and personal, legal and equitable, and of every nature and description, as well as rights, whether real or personal, credits and things in action, as property in possession.

Code 1852, § 2703; Code 1915, § 4627; Code 1935, § 5085; 10 Del. C. 1953, § 7322.;

The trustee or trustees shall take possession of all property and estate, except wearing apparel and the necessary bedding of the petitioner and the petitioner's family, and the tools, or implements, of the petitioner's trade or calling, not exceeding in value in the whole $50; which articles, and the value thereof, shall be ascertained by 2 judicious and impartial citizens of the county wherein the petitioner resides, to be appointed, and sworn or affirmed to the faithful performance of their duty, by a justice of the peace of the county. The articles so ascertained shall be exempt from any execution or legal process against the petitioner, except execution in a criminal case.

Code 1852, § 2704; Code 1915, § 4628; Code 1935, § 5086; 10 Del. C. 1953, § 7323; 70 Del. Laws, c. 186, § 1.;

If the petitioner is a tenant holding any lands or tenements under rent, the petitioner's goods and chattels that are on the demised premises at the time of executing the assignment, shall be liable for the rent of such premises for the current or preceding year, if such rent be not paid, but for 1 year only. The landlord may require that such rent be paid before the removal of the goods or chattels from the demised premises.

Code 1852, § 2705; Code 1915, § 4629; Code 1935, § 5087; 10 Del. C. 1953, § 7324; 70 Del. Laws, c. 186, § 1.;

The trustee or trustees, or the survivors or survivor of them, or the executors or administrators of such trustee or survivor, shall collect, recover and reduce into possession all the rights, whether real or personal, credits and things in action of the petitioner; and for that purpose may, in his or her or their own name or names institute and prosecute to judgment and execution any actions real, personal, or mixed; and shall also convert into money all the property and estate assigned, and for that purpose may sell, dispose of and convey the same, in parcels or otherwise, as may be deemed expedient.

Code 1852, § 2706; Code 1915, § 4630; Code 1935, § 5088; 10 Del. C. 1953, § 7325; 70 Del. Laws, c. 186, § 1.;

No action or proceeding of the petitioner at law, or in equity, shall be abated by the assignment, but such action or proceeding may be continued and execution may be issued on any judgment recovered by the petitioner, as if no such deed of assignment had been executed. Such action, proceeding, or execution shall be for the use or benefit of the trustee or trustees, or the survivors or survivor of them, or the executors or administrators of such trustee or survivor.

Code 1852, § 2707; Code 1915, § 4631; Code 1935, § 5089; 10 Del. C. 1953, § 7326.;

No release, acquittance, or receipt, made by the petitioner after executing the deed of assignment, of any debt, demand, right, action, or cause of action, existing at or before the time of executing the deed, shall be of any force or effect.

Code 1852, § 2708; Code 1915, § 4632; Code 1935, § 5090; 10 Del. C. 1953, § 7327.;

The net proceeds of the petitioner's estate, after deducting just expenses of executing the trust and a reasonable commission to the trustees, shall be applied towards payment of such demands against the petitioner as are exhibited to the trustees within 1 year after the date of the assignment, and no others. If the proceeds are insufficient to pay the whole amount of the demands, they shall be apportioned pro rata. Any overplus shall be returned to the petitioner, the petitioner's heirs, executors, or administrators.

Code 1852, § 2709; Code 1915, § 4633; Code 1935, § 5091; 10 Del. C. 1953, § 7328; 70 Del. Laws, c. 186, § 1.;

A demand existing at the time of executing the deed of assignment, but payable at a future day (subject to the proper discount if payable without interest) shall be admitted in the distribution of the petitioner's estate.

Code 1852, § 2710; Code 1915, § 4634; Code 1935, § 5092; 10 Del. C. 1953, § 7329.;

Controversies arising in the course of the execution of the trust, respecting any disputed demands or claims, may be referred, compromised, or settled, as may be deemed expedient.

Code 1852, § 2711; Code 1915, § 4635; Code 1935, § 5093; 10 Del. C. 1953, § 7330.;

The court may, in its discretion, require the trustee or trustees to give bond with security to the State for the faithful execution of the trust. It may, in its discretion, remove the trustee or trustees and compel an assignment of the trust estate to others appointed in their stead. It may order an inventory and appraisement of the trust estate and effects to be made and returned to the court, and may require accounts, touching the execution of the trust, to be rendered, and shall adjust and settle such accounts.

Any order by the court in the premises may be enforced by attachment and imprisonment.

Code 1852, §§ 2712, 2713; Code 1915, § 4636; Code 1935, § 5094; 10 Del. C. 1953, § 7331.;