A law relating to bankrupts and the procedure against them in the courts. A law providing a remedy for the creditors of a bankrupt, and for the relief and restitution of the bankrupt himself. A bankrupt law is distinguished from the ordinary law between debtor and creditor, as involving these three general principles: (1) A summary and immediate seizure of all the debtor’s property; (2) a distribution of it among the creditors in general, instead of merely applying a portion of it to the payment of the individual complainant; and (3) the discharge of the debtor from future liability for the debts then existing. The leading distinction between a bankrupt law and an insolvent law, in the proper technical sense of the words, consists in the char- acter of the persons upon whom it is designed to operate,

More On This Topic

Link to This Definition
Did you find this definition of BANKRUPT LAW helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary