Page:Federal Reporter, 1st Series, Volume 1.djvu/582

574: FEDERAL REPORTES. �John. Ch. 687; Spader v. Davis, 5 John. Ch. 280; Carr v. Farringion, 63 N. C. 560; Fetter v. Cirode, 4 B. Mon. 482; Day V. Washhwne, 24 How. 352 ; Clark v. Rist, 3. McLean, 494. �"It has been aptly termed an equitable leyy." Miller v. Sherry, 2 AVall. 249. And this lien is not displaced by the subsequent bankruptcy of the judgment debtor, but ia protected by the bankrupt act. Section 5075, Kev. St. ; Clark V. Rist, 3 McLean, 494 ; Sedgwick v. Mench, 6 Blatch, 156; Parker v. Merggridge, 2 Story, 334; Storm v. Waddell, supra; Carr v. Farrington, supra; Fetter v. Cirode, supra; Newdigate v. Jacobs, supra; McDurmott v. Strong, supra; God- dard v. Weaver, 1 Wood, 260; Yeatman v. Savings Institution, 95 U. S. 764; Stewart v. PZart, U. S. Sup. Ct., October term, 1879, 12 C. L. N. 201. �Coneeding that by the bankruptcy of the judgment debtor his assignee in bankruptcy acquired the right to make him- self a party to the pending creditors' bill, and proseoute the same, it by no means follows that because he did not do so the state court was deprived of jurisdiction. The assignee succeeded to the right the creditors of the bankrupt or any one of them had, or might bave obtained, by appropriate action, to avoid any conveyance made by the bankrupt in fraud of his creditors. But in any suit brought by the assignee for this purpose the creditors' liens on the property, whether acquired by creditors' bill or otherwise, would not be displaced or annulled; and, if the suit was successful, the assignee would have to distribute the fund according to pri- ority of liens and right between the creditors. And if the property did not exceed in value the amount of Hartly's lien upon it, and other creditors would derive no benefit from the suit, the assignee acted wisely in not intervening and allowing the lien crediter and the bankrupt to settle the con- troversy between themselves in the state court without expense to the estate. �"Assignees are not bound to take ail the property of the bankrupt, but may reject such as may be rather a burden than a beneiit to the estate." 1 Deacon on Bank. 535 ; ��� �