Bills and Notes: Provision for Extension of Time of Payment

1913 Michigan law review  
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more » ... ntent at http://about.jstor.org/participate--jstor/individuals/early-journal--content. JSTOR is a digital library of academic journals, books, and primary source objects. JSTOR helps people discover, use, and build upon a wide range of content through a powerful research and teaching platform, and preserves this content for future generations. JSTOR is part of ITHAKA, a not--for--profit organization that also includes Ithaka S+R and Portico. For more information about JSTOR, please contact support@jstor.org. MICHIGAN LAfI REVIEW MICHIGAN LAfI REVIEW BANKRUPTCY-PROMISE AiTEE ADJUDICATION TO PAY DISCHARGEABLE DEBT. -Appellant, having been adjudged a bankrupt, offered a composition to his creditors, of whom appellee was one, and borrowed $500 from appellee with which to carry into effect the terms of the composition, promising, in consideration of the loan, that after receiving his discharge he would pay appellee the residue of his claim after the distribution under the composition, agreement, in addition to repaying the loan. On appellant's failure to do so, appellee brought an action on the promise, and appellant pleaded that the promise was barred by the subsequent compromise and discharge. Held, that the promise created a valid and binding obligation, and, being made after the filing of the petition, it was not a provable claim and not, therefore, discharged. Zavello v. Reeves, 33 Sup. Ct. 365. It is elementary that a debt discharged by an adjudication in bankruptcy may be revived by a subsequent promise on the part of the debtor to pay; the discharge does not affect the indebtedness, but merely bars the remedy, and the original consideration supports the new promise. The issue presented in the principal case was whether this promise made after adjudication but before discharge, was renewal of a debt already barred by the proceedings in bankruptcy. A discharge releases the bankrupt from all "provable debts," with certain well known exceptions. The term "provable debts," as applied to those arising upon ordinary contracts, refers only to such as are in existence at the time of the filing of the petition. In re Burka, I04 Fed. 326; In re Swift, II2 Fed. 315; In re Roth & Appel (C. C. A.) 181 Fed. 667, I04 C. C. A.
doi:10.2307/1275808 fatcat:w4qb7xdmj5dhlgrig2wmvjjyte