Liberty National Bank v. Bear - 265 U.S. 365 (1924)
U.S. Supreme Court
Liberty National Bank v. Bear, 265 U.S. 365 (1924)
Liberty National Bank of Roanoke, Virginia v. Bear
Argued April 25, 1924
Decided May 26, 1924
265 U.S. 365
1. To invalidate the lien of a judgment under § 67f of the Bankruptcy Act, he who challenges it must show not only that the judgment was recovered within four months prior to the filing of the petition in bankruptcy, but also, by pleading and proof, that the judgment debtor was insolvent when the lien was obtained. P. 265 U. S. 368.
2. Assuming (but not deciding) that an adjudication of the bankruptcy of a partnership necessarily adjudges the partners, as individuals, bankrupt, it raises no presumption that they were insolvent for any period before the petition in bankruptcy was filed. P. 265 U. S. 370.
3. Nor does the fact that sales of the property of the partnership and partners, made some months later by the trustee in bankruptcy, did not realize enough to pay for the partnership or individual debts establish that the partners were insolvent at a time anterior to the filing of the bankruptcy petition. Id.
285 F. 703 reversed.
Certiorari to a decree of the circuit court of appeals which reversed a decree of the district court allowing the claims of the above named bank as secured claims in bankruptcy.