Wright v. Union Central Life Ins. Co.
Annotate this Case
304 U.S. 502 (1938)
- Syllabus |
U.S. Supreme Court
Wright v. Union Central Life Ins. Co., 304 U.S. 502 (1938)
Wright v. Union Central Life Insurance Co., 304 U.S. 502 (1938)
Nos. 715 and 716
Argued April 6, 1938
Decided May 31, 1938
304 U.S. 502
1. The filing by a farmer debtor of a petition for composition and extension, and an amended petition to be adjudged bankrupt, under § 75 of the Bankruptcy Act before its amendment by the Act of August 28, 1935, did not bring within the control of the bankruptcy court mortgaged land listed in the schedules as his property and of which he acquired the equity during the proceeding, but in which he held no interest when the petitions were filed. P. 304 U. S. 507.
2. Land in which a farmer debtor had an equity of redemption, but which was not subject to administration in a pending proceeding under § 75 of the Bankruptcy Act because his interest in it was acquired after the filing of his petition, was not brought within the jurisdiction by the enactment of the amendatory Act of August 28, 1935, and the filing of an amended petition under subsection (s) as amended, where those events occurred after his interest had been extinguished by a foreclosure of the mortgage in a state court followed by a judicial sale of the land and expiration of the period for redemption allowed by the state law. P. 304 U. S. 508.
3. Land subject to mortgage was scheduled by a farmer debtor as his property, in a proceeding for composition and extension brought under § 75 of the Bankruptcy Act. He had no interest in the land when the petition was filed, but later received a conveyance of it from owners of the equity of redemption. The mortgage was foreclosed and the mortgagee bought in the land at a judicial sale, but the period for redemption allowed by the state law had not expired before § 75 was amended by the Act of August 28, 1935, and the debtor filed his petition to be adjudged bankrupt, under subsection (s), as so amended. Held, applying amended subsection (n), that, upon the filing of the amended petition, the property was brought within the control of the bankruptcy court. and the time for redemption was extended. P. 304 U. S. 509.
4. The provision of § 75(n) of the Bankruptcy Act, as amended, for extension of period for redemption, held constitutional as
applied against a mortgage creditor who foreclosed by suit in an Indiana court and bought in the land at judicial sale, but as to whom the right of the debtor to redeem, under the Indiana law, had not expired when his petition to be adjudged bankrupt was filed under § 75, as amended. P. 304 U. S. 513.
The provision is within the bankruptcy power, and not inconsistent with the rights of the creditor-purchaser under the due process clause of the Fifth Amendment. It is not an invasion of power reserved to the State by the Tenth Amendment. P. 304 U. S. 515.
91 F.2d 894 affirmed in part, reversed in part.
Certiorari, 303 U.S. 630, to review the affirmance of two orders of the District Court in bankruptcy, the one striking certain described real estate from the debtor's schedules, the other refusing to permit an amendment of the schedules.