Liberty National Bank v. Bear - 276 U.S. 215 (1928)
U.S. Supreme Court
Liberty National Bank v. Bear, 276 U.S. 215 (1928)
Liberty National Bank of Roanoke v. Bear
Argued October 7, 1927
Decided February 20, 1928
276 U.S. 215
1. Under § 5a of the Bankruptcy Act, a partnership may be adjudicated a bankrupt as a separate entity, irrespective of any adjudication of bankruptcy against the partners as individuals. P. 276 U. S. 220.
2. An involuntary petition filed against a partnership, which does not in terms seek an adjudication that the partners are bankrupts, as individuals, nor allege that, as individuals, they are insolvent or have committed any act of bankruptcy, is not in legal effect a petition against them individually, and an adjudication thereunder of the partnership's bankruptcy is not, in legal effect, an adjudication that the partners are bankrupt individually. P. 276 U. S. 226.
3. Hence, in this case, there was no ground, under § 67c or § 67f of the Act, for annulling judgment liens obtained against the individual real estate of the partners within four months prior to tho filing of the involuntary petition against the partnership, but more than eight months prior to filing of their individual voluntary petitions. P. 276 U. S. 226.
18 F.2d 281 reversed.
Certiorari, 274 U.S. 731, to a decree of the circuit court of appeals which affirmed an order of the district court disallowing the claims of the bank as a secured creditor based on a judgment lien against the individual estates of partners who filed voluntary petitions in bankruptcy after the partnership had been adjudicated a bankrupt. See also 285 F. 703; 4 F.2d 240, and 265 U. S. 365.