Act of bankruptcy


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(Law) an act of a debtor which renders him liable to be adjudged a bankrupt.

See also: Act

Webster's Revised Unabridged Dictionary, published 1913 by G. & C. Merriam Co.
References in periodicals archive ?
(56) It was necessary to satisfy two jurisdictional requirements during this time: the bankrupt in question was a "merchant who had committed an act of bankruptcy." Id.
One may be involuntarily "petitioned" into bankruptcy by a creditor owed more than $1,000.00 unsecured who says the debtor has "committed an act of bankruptcy" such as failure to pay its debts.
Under the Bankruptcy Act, petitioning creditors were required to establish that the debtor had committed an act of bankruptcy, such as: fraudulent transfer, preferential transfer, assignment for benefit of creditors, appointment of state court receiver, or written admission of inability to pay debts.