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Facts of the Case

Provided by Justia

This was an action of assumpsit brought in the Circuit Court of Massachusetts against the defendant, as the maker of two promissory notes, both dated at New York on 22 March, 1811, for the sum of $771.86 each and payable to the plaintiff, one on 1f August, and the other on 15 August, 1811. The defendant pleaded his discharge under "an act for the benefit of insolvent debtors and their creditors," passed by the Legislature of New York 3 April, 1811. After stating the provisions of the said act, the defendant's plea averred his compliance with them and that he was discharged and a certificate given to him 15 February, 1812.


Conclusions

  1. Since the adoption of the Constitution of the United States, a state has authority to pass a bankrupt law, provided such law does not impair the obligation of contracts within the meaning of the Constitution, Art. I, s. 10, and provided there be no act of Congress in force to establish a uniform system of bankruptcy conflicting with such law.