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North Carolina General Statutes Chapter 23 Debtor and Creditor

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Article 1 - Assignments for Benefit of Creditors.

• N.C. Gen. Stat. § 23-1.   Debts mature on execution of assignment; no preferences
  Upon the execution of any voluntary deed of trust or deed of assignment for the benefit of creditors, all debts of the maker thereof shall...
• N.C. Gen. Stat. § 23-2.   Trustee to file schedule of property
  Upon the execution of such deed of trust, the trustee, whether named therein or appointed as hereafter provided for, shall file with the clerk of...
• N.C. Gen. Stat. § 23-3.   Trustee to recover property conveyed fraudulently or in preference
  It is the duty of the trustee to recover, for the benefit of the estate, property which was conveyed by the grantor or assignor in...
• N.C. Gen. Stat. § 23-4.   Substitute for incompetent trustee appointed in special proceeding
  When a trustee named in a deed of assignment for the benefit of creditors has died or resigned or has in any way become incompetent...
• N.C. Gen. Stat. § 23-5.   Insolvent trustee removed unless bond given; substitute appointed
  Upon the complaint of any creditor of the assignor or trustee in such deed of trust, alleging under oath that the trustee named therein is...
• N.C. Gen. Stat. § 23-6.   Trustee removed on petition of creditors; substitute appointed
  Upon the written petition of one‑fourth of the number of the creditors of the grantor or assignor whose claims aggregate more than fifty per cent...
• N.C. Gen. Stat. § 23-7.   Substituted trustee to give bond
  Upon the removal or resignation of any trustee it is the duty of the clerk to require the person appointed to execute the provisions of...
• N.C. Gen. Stat. § 23-8.   Only perishable property sold within ten days of registration
  It is unlawful for any trustee, whether named in such deed of trust or appointed by a clerk of the superior court, to sell any...
• N.C. Gen. Stat. § 23-9.   Creditors to file verified claims with clerk; false swearing misdemeanor
  All creditors of the maker of such deed of trust shall, before receiving payment of any amount from the said trustee, file with the clerk...
• N.C. Gen. Stat. § 23-10.   Priority of payments by trustee
  The trustee, after paying the necessary costs of the administration of the trust, shall pay as speedily as possible (1) All debts which are a...
• N.C. Gen. Stat. § 23-11.   Trustee to account quarterly; final account in twelve months
  The trustee, whether named in the deed of trust or appointed by a clerk of a superior court, shall within three months from the registration...
• N.C. Gen. Stat. § 23-12.   Trustee violating duties guilty of misdemeanor
  If any trustee in a deed of trust for the benefit of creditors shall fail to file his inventory as required by law, or shall...

Article 2 - Petition of Insolvent for Assignment for Creditors.

• N.C. Gen. Stat. § 23-13.   Petition; schedule; inventory; affidavit
  Every insolvent debtor may present a petition in the superior court, praying that his estate may be assigned for the benefit of all his creditors,...
• N.C. Gen. Stat. § 23-14.   Clerk to give notice of petition
  On receiving the petition, schedule and affidavit, the clerk of the superior court shall make an order requiring all the creditors of such insolvent to...
• N.C. Gen. Stat. § 23-15.   Order of discharge and appointment of trustee
  If no creditor oppose the discharge of the insolvent, the clerk of the superior court before whom the hearing of the petition is had shall...
• N.C. Gen. Stat. § 23-16.   Terms and effect of order of discharge
  The order of discharge shall declare that the person of such insolvent shall forever thereafter be exempted from arrest or imprisonment on account of any...
• N.C. Gen. Stat. § 23-17.   Suggestion of fraud by opposing creditor
  Every creditor opposing the discharge of the insolvent may suggest fraud and set forth the particulars thereof in writing, verified by his oath; but the...

Article 3 - Trustee for Estate of Debtor Imprisoned for Crime.

• N.C. Gen. Stat. § 23-18.   Persons who may apply for trustee for imprisoned debtor
  When any debtor is imprisoned in the penitentiary for any term, or in a county jail for any term more than 12 months, application by...
• N.C. Gen. Stat. § 23-19.   Superior court appoints; copy of sentence to be produced
  The application must be made to the superior court of the county where the debtor was convicted, and upon producing a copy of the sentence...
• N.C. Gen. Stat. § 23-20.   Duties of trustee; accounting; oath
  The trustee of the imprisoned debtor shall pay his debts pro rata. After paying such debts, the trustee shall apply the surplus, from time to...
• N.C. Gen. Stat. § 23-21.   Court may appoint several trustees
  The court has power, when deemed necessary, to appoint more than one person trustee under this chapter; but in reference to the rights, authorities and...
• N.C. Gen. Stat. § 23-22.   Court may remove trustee and appoint successor
  In case of the death, removal, resignation or other disability of a trustee, the court making the appointment may from time to time supply the...

Article 4 - Discharge of Insolvent Debtors.

• N.C. Gen. Stat. § 23-23.   Insolvent debtor's oath
  Prisoners in order to be entitled to discharge from imprisonment under the provisions of this article shall take the following oath: I, ______________, do solemnly...
• N.C. Gen. Stat. § 23-24.   Persons imprisoned for nonpayment of costs in criminal cases
  The following persons may be discharged from imprisonment upon complying with this article and G.S. 153‑194: Every person committed for the fine and costs of...
• N.C. Gen. Stat. § 23-25.   Petition; before whom; notice; service
  Every such person, having remained in prison for 20 days, may apply by petition to the court where the judgment against him was entered, praying...
• N.C. Gen. Stat. § 23-26.   Warrant issued for prisoner
  The clerk of the superior court before whom such petition is presented shall forthwith issue a warrant to the sheriff, or keeper of the prison,...
• N.C. Gen. Stat. § 23-27.   Proceeding on application
  At the hearing of the petition, if the prisoner has no visible estate, and takes and subscribes the oath or affirmation prescribed in this Article,...
• N.C. Gen. Stat. § 23-28.   Suggestion of fraud
  The chairman of the board of commissioners, and every officer interested in the fee bill taxed against such prisoner, may oppose his taking the insolvent...
• N.C. Gen. Stat. § 23-29.   Persons taken in arrest and bail proceedings, or in execution
  The following persons also are entitled to the benefit of this article as hereinafter provided: (1) Every person taken or charged on any order of...
• N.C. Gen. Stat. § 23-30.   When petition may be filed
  Every person taken or charged as in the preceding section [ 23‑29] specified may, at any time after his arrest or imprisonment, petition the court...
• N.C. Gen. Stat. § 23-30.1.   Provisional release
  Every person who has filed a petition under the provisions of G.S. 23‑30 shall be brought before a judge within 72 hours after filing the...
• N.C. Gen. Stat. § 23-31.   Petition; contents; verification
  The petition shall set forth cause of the imprisonment, with the writ or process and complaint on which the same is founded, and shall have...
• N.C. Gen. Stat. § 23-32.   Notice; length of notice and to whom given
  Twenty days notice of the time and place at which the petition will be filed, together with a copy of such petition and the account...
• N.C. Gen. Stat. § 23-33.   Who may suggest fraud
  Every creditor upon whom the notice directed in G.S. 23‑32 is served may suggest fraud upon the hearing of the petition, and the issues made...
• N.C. Gen. Stat. § 23-34.   Where no suggestion of fraud, discharge granted
  If no creditor suggests fraud or opposes the discharge of the debtor, the clerk of the superior court before whom the petition is heard shall...
• N.C. Gen. Stat. § 23-35.   Continuance granted for cause
  When it appears to the court that any debtor, who may have given bond for his appearance under this chapter, is prevented from attending court...
• N.C. Gen. Stat. § 23-36.   Where fraud in issue, discharge only after trial
  After an issue of fraud or concealment is made up, the debtor shall not discharge himself as to the creditors in that issue, except by...
• N.C. Gen. Stat. § 23-37.   If fraud found, debtor imprisoned
  If, on the trial, the jury finds that there is any fraud or concealment, the judgment shall be that the debtor be imprisoned until a...
• N.C. Gen. Stat. § 23-38.   Effect of order of discharge
  The order of discharge under the last four articles of this chapter, whether granted upon a nonsuggestion of fraud, upon the finding of a jury...

Article 5 - General Provisions under Articles 2, 3, and 4.

• N.C. Gen. Stat. § 23-39.   Superior or district court tries issue of fraud
  In every case where an issue of fraud is made up as provided in this Chapter, the case shall be entered in the trial docket...
• N.C. Gen. Stat. § 23-40.   Insolvent released on giving bond
  Every debtor entitled under the provisions of this chapter to discharge as an insolvent may, at the time of filing his application for a discharge...
• N.C. Gen. Stat. § 23-41.   Surety in bond may surrender principal
  The surety in any bond conditioned for the appearance of any person under this chapter may surrender the principal, or such principal may surrender himself,...
• N.C. Gen. Stat. § 23-42.   Creditor liable for jail fees
  When any debtor is actually confined within the walls of a prison, on an order of arrest in default of bail or otherwise, the jailer...
• N.C. Gen. Stat. § 23-43.   False swearing; penalty
  If any insolvent or imprisoned debtor takes any oath prescribed in this chapter falsely and corruptly, that person is guilty of a Class I felony,...
• N.C. Gen. Stat. § 23-44.   Powers of trustees hereunder
  Any trustee appointed under the last four articles of this chapter, as therein contemplated, is hereby declared a trustee of the estate of the debtor,...
• N.C. Gen. Stat. § 23-45.   Jail bounds
  Any imprisoned debtor may take the benefit of the prison bounds by giving security, as required by law, except as follows: (1) A debtor against...

Article 6 - Practice in Insolvency and Certain Other Proceedings.

• N.C. Gen. Stat. § 23-46.   Unlawful to solicit claims of creditors in proceedings
  It shall be unlawful for any individual, corporation, or firm or other association of persons, to solicit of any creditor any claim of such creditor...
• N.C. Gen. Stat. § 23-47.   Violation of preceding section a misdemeanor
  Any individual, corporation, or firm or other association of persons violating any provision of G.S. 23‑46 shall be guilty of a Class 1 misdemeanor. (1931,...

Article 7 - Bankruptcy of Taxing, etc., Districts, Counties, Cities, Towns and Villages.

• N.C. Gen. Stat. § 23-48.   Local units authorized to avail themselves of provisions of bankruptcy law
  With the approval of the Local Government Commission of North Carolina and with the consent of the holders of such percentage or percentages of its...

Last modified: February 21, 2012