Page:Federal Reporter, 1st Series, Volume 4.djvu/732

718 FEDERAIi BEPOBTEK. �was regularly made of ail the bankrupts' partnership and individual property. �Notwithstanding these bankruptcy proceedings, the pro- ceedings under the attachment were oontinued in the state court, by the appointment of an auditor, the entry of the judgment in favor of the attaching creditors, the sale of the real estate taken under the writ, on the twenty-eighth of December, 1876, and the execution of a deed by the auditor to the purchaser, two daya afterwards. �The purchaser then filed a bill in the court of chancery of New Jersey, in the nature of a creditor's bill, alleging that William MoUer, one of the defendants in attachment, pre- vioua to the issue of the writ, had made and executed two eeveral deeds of oonveyance to his two daughters, Elizabeth MoUer and Sarah M. Moller, purporting to convey the said real estate; that these deeds were voluntary, without valuable consideration, and were, as was expressed upon their face, "in consideration of natural love and affection," and were fraudulent and void against creditors, and praying that they might be decreed illegal, null and void against the complain- ant as purchaser. �To this bill the defendants put in a plea, setting up the proceedings in bankruptcy in bar of the complainant's title. �The case has been brought into this court by virtue of the removal act, and has been heard upon bill and plea. It must be determined by asoertainiug the effect which the bankruptcy proceedings had upon the pending attachment. The writ waa issued within four months next preceding the filing the peti- tion; was the attachment, therefore, dissolved by the adjudi- cation? If so, the state court had no jurisdiction thereafter to enter a judgment or make an order for the sale of the prop- erty, and the complainant's title is void. Or, was it necessary for the assignee, after his appointment, to take some affirma- tive steps in order to divest the lien of the attachment? None such were taken, and unless the attachment was dis- solved by operation of law, after the filing the petition in bankruptcy, and the adjudication thereon, the plea is bad and must be overnried. ����