Opinion · Supreme Court of the United States

Long v. Bullard

117 U.S. 617

Type: Opinion
Court: Supreme Court of the United States
Jurisdiction: Federal
Date: 1886-04-12
Topic: general

holding that a secured creditor can ignore a bankruptcy proceeding because it can always look to the hen to satisfy its claim | holding that a secured creditor can ignore a bankruptcy proceeding because it can always look to the lien to satisfy its claim | holding that a secured creditor's existing lien "was preserved notwithstanding the bankruptcy of his debtor." | holding “[hjere the creditor neither proved his debt in bankruptcy nor released his lien. Consequently his security was preserved notwithstanding the bankruptcy of this debtor.” | “Here the creditor neither proved his debt in bankruptcy nor released his lien. Consequently his security was preserved notwithstanding the bankruptcy of his debt- or.” | "Here the creditor neither proved his debt in bankruptcy nor released his lien. Consequently his security was preserved notwithstanding the bankruptcy of his debtor." | discharge in bankruptcy did not release a pre-petition lien of a mortgage | under Bankruptcy Act, liens on property exempt from bankruptcy estate enforceable after discharge | “[T]he discharge of [debtor] in bankruptcy did not release the hen of the mortgage.” | secured creditor's lien protected in bankruptcy | secured creditor’s lien protected in bankruptcy | same holding under prior law

Citator

Cited by: 102 opinions

Me. Chief Justice ’Waite,

after stating the case as above reported, delivered the opinion of the court..

It perhaps sufficiently appears that a determination of the question, as to the effect of the discharge in bankruptcy upon the right of Bullard to- enforce a lien upon the property in existence at the time of the commencement of the proceedings in bankruptcy, was necessarily: involved in the decision of the Supreme Court which-is here .under review, and that this decision was. adverse to the right set up by Long. This being the case, we have'jurisdiction, but there cannot be a doubt of the correctness of the decision. By § 5119' of the Revised Statutes the discharge releases the bankrupt only from debts’which were or .might have been "proved, and by § 50 Y5 debts secured by mortgage or pledge can only be proved for the balance remaining due after1 deducting the value of the security, unless all claim ’ upon the security is released. Here the creditor neither proved *621 his,debt in bankruptcy nor released his lien. Consequently his security was preserved notwithstanding the bankruptcy of. his debtor. McHenry v. La Société Française, 95 U. S. 58; Dudley v. Easton, 104 U. S. 99, 103; Porter v. Lazear, 109 U. S. 84, 86. The dispute in the court below was as to the existence of the lien at the time of the commencement of the proceedings in bankruptcy. That depended entirely on the. State laws, as to which the judgment of the State court is final and not subject to review here.

The setting apart of the homestead to the bankrupt under § 5045 of the Revised Statutes did not relieve the property from the óperatioii of liens created by contract before the bankruptcy. It is not the decree in this case which constitutes the lien on the property, but the conveyance of Long and wife before the bankruptcy.

The judgment is Affirmed.