MCA Chapter 1

in effect

Miss. Code Ann. § 85-1-1 Execution of assignment; petition in chancery in case of general assignment.

Assignments for the benefit of creditors may be executed as heretofore; but in every case of a general assignment where the property assigned shall exceed in value the sum of One Thousand Dollars ($1,000.00), the assignee or trustee shall, before he enters upon the discharge of his duties, after taking possession, and within twenty-four (24) hours thereafter, file a petition in the chancery court of the county of the assignor’s residence or place of business, or if he had no residence or place of business in this state, then of the county of the residence of some of his creditors, or where the property or some of it may be, for the administration of the trust. The assignor and all of his creditors must be made parties to the petition.

Miss. Code Ann. § 85-1-3 Schedules of liabilities and assets to be filed.

With every general assignment there shall be filed, unless the data all appear on its face, at least two (2) schedules. One of them, a schedule of liabilities, must set forth, so far as known to the assignor: The name of each of his creditors; The post-office address of each of them; The sum due each; How each debt is evidenced; The amount of interest each debt bears, and if in any way the debt is usurious, the facts must be stated; The consideration for each debt; and in case of renewals the history of the transaction must be traced to the original consideration; and What security, if any, each creditor has. The other, a schedule of assets, must describe the property conveyed, and give its location and value. Both schedules-and if the data be in the face of the deed, then the assignment-must be under the oath of the assignor avowing the truthfulness of the matters of fact stated. A general assignment which does not comply with this section shall be void as to all preferences contained in it.

Miss. Code Ann. § 85-1-5 Bond of assignee or trustee.

The assignee or trustee must file a bond with his petition, to be approved by the clerk, in a penalty equal to the value of all the property assigned and Two Hundred and Fifty Dollars ($250.00) additional, payable to the state, with at least two (2) sufficient sureties, conditioned for the faithful administration of his trust. Any judgment or decree that may be rendered in said cause or proceeding against the principal in the bond may be rendered against the sureties therein.

Miss. Code Ann. § 85-1-7 Assignee to become receiver of the court.

The assignee, upon filing the petition and the approval of his bond, shall become a receiver of the court, and shall be entitled to all the rights and privileges, and subject to all the duties and obligations, of other receivers in equity, and may be removed as such as in other cases, and shall not be sued in any other court save by permission of the court, or chancellor in vacation.

Miss. Code Ann. § 85-1-9 Inventories.

The assignee shall, as speedily as may be, and within ten (10) days after the filing of his petition, unless the court or the chancellor in vacation, shall, for cause, extend the time, prepare and file in the cause a complete and perfect inventory of the property and effects assigned. If, after making the first inventory, any other property or effects conveyed by the deed of assignment shall come to the possession or knowledge of the assignee, he shall make a supplemental inventory thereof speedily, and within ten (10) days thereafter, unless the time therefor shall be extended as provided in the case of the original inventory.

Miss. Code Ann. § 85-1-11 Creditor’s cross-petition to set aside assignment.

Any creditor may file in said cause a cross-petition against the receiver, and he may make the assignor or other persons, whether parties to the suit before that time or not, defendants thereto, and show to the court that the assignment is fraudulent, or ought not, for any other reasons, to be enforced; and property other than that in the trustee’s or assignee’s hands may be shown to be liable for the debts of the assignor.

Miss. Code Ann. § 85-1-13 Creditor’s cross-petition to set aside assignment; rights of successful creditor.

The creditor filing a cross-petition, if he succeed in establishing that the assignment ought not to be enforced, shall have priority over all other creditors in the distribution of the proceeds of the property in the assignee’s hands, and a lien, from the filing of his cross-petition, on other property he may seek to have subjected to his debt; and in aid of such lien, a writ of sequestration, injunction, or other remedial process may issue.

Miss. Code Ann. § 85-1-15 Creditor’s cross-petition to set aside assignment; rights of unsuccessful creditor.

Whenever a creditor may seek to set aside the assignment for any reason as provided in this chapter, and fail to do so, he shall nevertheless receive the share provided for him according to the terms of the instrument, first, however, deducting therefrom all the court costs, reasonable attorneys’ fees, and other necessary expenses incurred by the assignee in defending the suit.

Miss. Code Ann. § 85-1-17 Personal decree against assignor.

A creditor may demand, by cross-petition, a personal decree against the assignor for the amount of his debt; but priority of such personal decrees shall not affect the distribution of the assigned effects, or the proceeds thereof.

Miss. Code Ann. § 85-1-19 Duty of creditors to establish claims.

It shall be the duty of all creditors to establish their claims in said cause to the satisfaction of the court; and any creditor may oppose and controvert the demand or claim, in whole or in part, of any other person; and the court shall, on motion, cause all proper issues to be made up to test the validity of claims.