AB970, s. 111
21Section
111. 128.02 (2) of the statutes is amended to read:
AB970,63,9
1128.02
(2) No assignment shall be void because of any defect, informality or
2mistake
therein in the assignment or in the bond, inventory or list of creditors
3accompanying the
same; and the assignment. The court may direct the amendment
4of the assignment or of any other
paper document to effect the intention of the
5assignor or assignee, or to obtain a distribution of the assignor's assets as provided
6in this chapter, and any such amendment shall relate back to the time of the
7execution of the
paper document. No mistake in filing a copy instead of an original
8or any like mistake or inadvertent failure to comply with
the provisions of this
9chapter shall void the assignment.
AB970,63,14
10(3) (a) No creditor shall, in case a debtor has attempted to make an assignment
11for the benefit of creditors, or in case of the insolvency of any debtor, by attachment,
12garnishment or otherwise, obtain priority over other creditors upon
such the 13assignment being adjudged void, or in consequence of any sale, lien or security being
14adjudged void
; but in.
AB970,63,17
15(b) In all
such cases
described in par. (a), the property of
such the debtor shall
16be administered for the ratable benefit of all of the debtor's creditors under the
17direction of the court by the assignee or by a receiver.
Note: Subdivides provision, inserts specific references and cross-references and
replaces other language for greater readability and conformity with current style.
AB970, s. 112
18Section
112. 128.03 of the statutes is amended to read:
AB970,63,23
19128.03 Liens by legal proceedings; assignment. When a lien has been
20obtained by legal proceedings against the property of a debtor the debtor may, within
21thirty 30 days thereafter, make an assignment of all of the debtor's nonexempt
22property for the benefit of all of the debtor's creditors, whereupon
such the lien shall
23be dissolved and the property shall be turned over to the assignee.
Note: Replaces word form of numbers with digits and other language for greater
readability and conformity with current style.
AB970, s. 113
1Section
113. 128.04 of the statutes is renumbered 128.001 (1) (intro.) and
2amended to read:
AB970,64,53
128.001
(1) (title)
Definition of insolvency; time Insolvent. (intro.) A person
4shall be deemed is considered "insolvent
within the provisions of this chapter" 5whenever
any of the
following conditions is met:
AB970,64,10
6(a) The aggregate of the person's property, exclusive of any property
which that 7the person may have conveyed, transferred, concealed or removed, or permitted to
8be concealed or removed, with intent to defraud, hinder or delay the person's
9creditors, shall not, at a fair valuation be sufficient in amount to pay the person's
10debts
, or if an.
AB970,64,12
11(b) An execution
be against the person or the person's property is returned
12unsatisfied
or if the.
AB970,64,13
13(c) The person
shall make makes an assignment for the benefit of creditors.
Note: Repositions and subdivides provision and replaces language for greater
readability and conformity with current style.
AB970, s. 114
14Section
114. 128.05 (1) of the statutes is amended to read:
AB970,64,2015
128.05
(1) The assignee shall
indorse
endorse in writing the assignee's
16acceptance of the assignment, and shall file
such
the assignment with the clerk of
the 17circuit court in the county where the debtor has his or her residence or principal place
18of business. The court shall, upon the filing of
such
the assignment, order
such the 19assignee to administer the debtor's estate pursuant to this chapter, and the assignee
20shall be vested with the powers of a receiver.
Note: Replaces disfavored term.
AB970, s. 115
21Section
115. 128.05 (2) of the statutes is amended to read:
AB970,65,4
1128.05
(2) A certified copy
thereof of an assignment filed under sub. (1) may
2be recorded in the office of the register of deeds of any county wherein lands are
3conveyed by
such the assignment in the same manner and with the same effect as
4other conveyances.
Note: Inserts specific cross-reference and replaces disfavored term.
AB970, s. 116
5Section
116. 128.07 (1) (intro.) and (b) of the statutes are created to read:
AB970,65,66
128.07
(1) Definitions. (intro.) In this section:
AB970,65,87
(b) "Recipient" means a person who receives a preference, or benefits from a
8preference, or that person's agent.
Note: Creates a definition subsection for the proper location of definitions in s.
128.07. The definition of "recipient" is created from language in sub.(2) in order to
simplify and improve the clarity and readability of sub. (2).
AB970, s. 117
9Section
117. 128.07 (1) of the statutes is renumbered 128.07 (1) (a) and
10amended to read:
AB970,65,1711
128.07
(1) (a)
A person shall be
deemed considered to have given a preference
12if, being insolvent, the person has made a transfer of any of his or her property, or
13has procured or
suffered permitted a judgment to be entered against him or her in
14favor of any other person, and the effect of the transfer or the enforcement of the
15judgment will be to enable any
one of his or her creditors creditor to obtain a greater
16percentage of his or her debt than any other
of such creditors creditor of the same
17class.
Note: Moves definition to definitions subsection. Replaces disfavored terms.
AB970, s. 118
18Section
118. 128.07 (2) of the statutes is amended to read:
AB970,66,519
128.07
(2) If the debtor
shall have
has given a preference within
four 4 months
20before the filing of a petition, or an assignment,
or after the filing of the petition and
21before the appointment of a receiver, or after the filing of an assignment and before
22the qualification of the assignee, and the
person receiving it, or to be benefited
1thereby, or his or her agent acting therein, shall have had
recipient has reasonable
2cause to believe that the enforcement of
such the judgment or transfer would effect
3a preference,
it the judgment shall be voidable by the receiver or assignee, and the
4receiver or assignee may recover the property or its value from
such person the
5recipient.
Note: Deletes language moved to sub. (1) (a) and replaces word form of number
with digits and other language for greater readability and conformity with current style.
See also the previous section of this bill.
AB970, s. 119
6Section
119. 128.07 (3) of the statutes is renumbered 128.07 (1) (c) 1. (intro.)
7and amended to read:
AB970,66,118
128.07
(1) (c) 1. (intro.) "Transfer" means
the any of the following, whether
9made absolutely or conditionally, voluntarily or involuntarily, by or without judicial
10proceedings, as a conveyance, sale, assignment, payment, pledge, mortgage, lien,
11encumbrance, gift, security or otherwise:
AB970,66,13
12a. The sale or other disposal of or
of parting with property
or with, an interest
13therein in property or
with the possession
thereof or the of property.
AB970,66,17
14b. The fixing of a lien upon property or upon an interest
therein, absolutely or
15conditionally, voluntarily or involuntarily, by or without judicial proceedings, as a
16conveyance, sale, assignment, payment, pledge, mortgage, lien, encumbrance, gift,
17security or otherwise in property.
AB970,66,19
182. The retention of a security title to property delivered to a debtor shall be
19deemed considered a transfer
suffered permitted by
such the debtor.
Note: Repositions and subdivides provision, repositions text and replaces
disfavored language for greater readability and conformity with current style.
AB970, s. 120
20Section
120. 128.07 (4) of the statutes is amended to read:
AB970,67,1021
128.07
(4) A transfer of property other than real property shall be
deemed 22considered to have been made or
suffered permitted at the time when it became so
1far perfected that no subsequent lien upon
such the property obtainable by legal or
2equitable proceedings on a simple contract could become superior to the rights of the
3transferee. A transfer of real property shall be
deemed considered to have been made
4or
suffered permitted when it became so far perfected that no subsequent bona fide
5purchase from the debtor could create rights in
such
the property superior to the
6rights of the transferee. If any transfer of real property is not so perfected against a
7bona fide purchase, or if any transfer of other property is not so perfected against
8such liens by legal or equitable proceedings prior to the filing of a petition initiating
9a proceeding in insolvency, it shall be
deemed considered to have been made
10immediately before the filing of the petition.
Note: Replaces disfavored terms.
AB970, s. 121
11Section
121. 128.11 of the statutes is amended to read:
AB970,67,18
12128.11 Provisional remedies. In all actions authorized by this chapter
, 13appropriate provisional remedies may be had and final relief administered to the
14equal distribution of all assets recovered among the creditors of the debtor, and the
15court may make such orders for the payment of costs and expenses as may be just.
16An action or proceeding authorized
herein by this chapter for the benefit of all
17creditors may be taken by a creditor although the creditor's demand is not due at the
18commencement thereof.
Note: Replaces disfavored term.
AB970, s. 122
19Section
122. 128.13 of the statutes is amended to read:
AB970,68,3
20128.13 (title)
Inventory of assets and list of creditors. With the filing of
21an assignment or within
ten 10 days after the appointment of a receiver, the debtor
22shall file with the clerk of
the circuit court a correct inventory of the debtor's assets
23and a list of the debtor's creditors, stating the place of residence of each and the
1amount due
to each
, which. The inventory and list shall be verified by the debtor's
2oath
, but no. No mistake
therein in the inventory or list shall affect the rights of any
3creditor.
Note: Breaks up long sentence and replaces nonspecific references.
AB970, s. 123
4Section
123. 128.15 (1) of the statutes is renumbered 128.15 (1) (a) (intro.) and
5amended to read:
AB970,68,86
128.15
(1) (a) (intro.) At the expiration of the period of time limited for the filing
7of claims, the receiver or assignee shall file
all of the following with the clerk
proof 8of circuit court:
AB970,68,9
91. Proof of publication of
the notice
and a required under s. 128.14 (1).
AB970,68,12
102. A list of the creditors to whom the notice was
made with given that includes 11the debts
thereof respectively owed to the creditors, verified by an affidavit
, and also
12a.
AB970,68,15
133. A list of claims filed stating the
names of creditors, residences name and
14residence of and
amounts amount claimed
respectively by each creditor who has filed
15a claim.
AB970,69,2
16(b) At any time
thereafter after the expiration of the period of time limited for
17the filing of claims, the receiver or assignee or, upon
that person's the receiver's or
18assignee's refusal or failure to act, any creditor may file written objections to any
19claim specifying the grounds
thereof and for the objection. The party filing the
20objection shall serve a copy
thereof in such manner as the court may order of the
21objection upon the claimant
as ordered by the court. Depositions may thereafter be
22taken as in civil actions. The court, on the application of either party, shall
fix by 23enter an order
fixing a time when the objections shall be heard, which shall be served
24as therein prescribed upon the adverse party
as prescribed in the order. Upon the
1final hearing the court shall make such order as shall be just and may compel the
2payment of costs.
Note: Subdivides provision, reorders text and replaces language for greater
readability and conformity with current style.
AB970, s. 124
3Section
124. 128.16 (1) of the statutes is amended to read:
AB970,69,124
128.16
(1) The court may compel the debtor to discover any property alleged
5to belong or to have belonged to him or her, the disposition
thereof of the property and
6the consideration and all the circumstances of the disposition. Every officer, agent
7or stockholder of a corporation,
every manager or member of a limited liability
8company and every person to whom it shall be alleged that any transfer of property
9has been made, or in whose possession or control the
same property is alleged to be,
10may be compelled to testify in relation
thereto to the property and to the transfer or
11possession of the property; but the witness shall not be liable to criminal prosecution
12or proceeding for or on account of his or her testimony.
Note: Replaces nonspecific references.
AB970, s. 125
13Section
125. 128.18 (3) of the statutes is renumbered 128.18 (3) (b), and 128.18
14(3) (b) (intro.), as renumbered, is amended to read:
AB970,69,2115
128.18
(3) (b) (intro.) A lien created by, or obtained in or pursuant to any action
16which that was begun against, a person within
four 4 months before the
17commencement of proceedings for the appointment of a receiver
herein, or the filing
18of an assignment
hereunder, under this chapter shall be dissolved by the
19appointment of a receiver or the qualification of the assignee, and the receiver or
20assignee shall be subrogated to the rights of the holder of
such the lien for the benefit
21of all creditors, if:
Note: Replaces word form of number with digits, disfavored term and nonspecific
references.
AB970, s. 126
22Section
126. 128.18 (3) (a) of the statutes is created to read:
AB970,70,2
1128.18
(3) (a) In this subsection, "preference" has the meaning given in s.
2128.07 (1) (a).
AB970, s. 127
3Section
127. 128.18 (5) of the statutes is amended to read:
AB970,70,104
128.18
(5) All conveyances, transfers, assignments or encumbrances of a
5debtor's property, or any part
thereof of a debtor's property, made or given by the
6debtor within 4 months prior to the filing of a petition or assignment
hereunder 7under this chapter with the intent and purpose on the debtor's part to hinder, delay
8or defraud
any of the debtor's creditors
, or any of them, shall be
null and void as
9against the
debtor's creditors
of such debtor except as to purchasers in good faith and
10for a present fair consideration.
Note: Replaces disfavored term and nonspecific references.
AB970, s. 128
11Section
128. 128.18 (6) of the statutes is amended to read:
AB970,70,2312
128.18
(6) All levies, judgments, attachments or other liens obtained through
13legal proceedings against a person who is insolvent at any time within 4 months prior
14to the filing of a petition or assignment
hereunder shall be deemed null and under
15this chapter are void in case a receiver is appointed or an assignee qualifies
16hereunder, and the. The property affected by the levy, judgment, attachment or other
17lien shall be
deemed wholly discharged and released from the
same levy, judgment,
18attachment or lien, and shall pass to the receiver or assignee as a part of the estate
19of the debtor unless the court shall, on due notice, order that the right under
such 20the levy, judgment, attachment or
other lien shall be preserved for the benefit of the
21estate
; and thereupon the same. In that case, the right under the levy, judgment,
22attachment or lien may pass to and shall be preserved by the receiver or assignee for
23the benefit of the estate.
Note: Breaks up long sentence, replaces and deletes disfavored terms and
nonspecific references.
AB970, s. 129
1Section
129. 128.20 (1) of the statutes is renumbered 128.20 (1) (a) (intro.) and
2amended to read:
AB970,71,73
128.20
(1) (a) (intro.) Every receiver or assignee shall, within 6 months after
4the time limited for filing claims or within
such
any further time
as that the court
5shall allow allows, file with the clerk of
the circuit court a full and itemized
6statement
, verified by the receiver's or assignee's oath
of the, showing all of the
7following in regard to the receivership or assignment:
AB970,71,8
81. The property received by the receiver or assignee
, the.
AB970,71,10
92. The manner of the receiver's or assignee's dealing
therewith, with the
10property received.
AB970,71,11
113. The amount of money realized by the receiver or assignee
, the.
AB970,71,13
124. The condition of the property and funds in the receiver's or assignee's
13possession
, the.
AB970,71,14
145. The names and residences of the debtor's creditors
, the.
AB970,71,15
156. The dividends paid
them, the
to the debtor's creditors.
AB970,71,16
167. The receiver's or assignee's receipts and disbursements
with the,
AB970,71,18
178. The receiver's or assignee's claim for compensation and administration
18expenses.
AB970,71,23
19(b) If any receiver or assignee
shall neglect neglects to apply promptly for a
20settlement of
the receiver's or assignee's his or her account, the court may, upon
21application of any creditor, compel the making and filing of
such the account or
22settlement
thereof of the account and in
such that case the receiver or assignee may
23be denied compensation.
Note: Subdivides provision and replaces and deletes disfavored terms and
nonspecific references.
AB970, s. 130
1Section
130. 128.20 (2) of the statutes is amended to read:
AB970,72,132
128.20
(2) Upon filing the report
described in sub. (1) (a), the receiver or
3assignee may apply to the court upon not less than 10 days' notice
thereof by mail
4to the respective creditors named in the report, for a final settlement of the account.
5The court shall fix a time and place for the hearing of objections or taking of evidence
6and by order settle and adjust the accounts and the compensation and expenses of
7the receiver or assignee, regardless of whether objection is made. The order shall be
8conclusive upon all parties including the sureties of the receiver or assignee
, but the.
9The receiver or assignee or any creditor may appeal from the order in the manner
10prescribed for appeals in civil actions except that the receiver or assignee may file
11a notice and undertaking with the clerk without other service
thereof of the notice
12and undertaking. The receiver or assignee shall be discharged of the trust and the
13bond canceled upon compliance with the final order of the court.
Note: Inserts specific cross-reference, breaks up long sentence and replaces
disfavored terms.
AB970, s. 131
14Section
131. 128.21 (4) (intro.) of the statutes is amended to read:
AB970,72,2015
128.21
(4) (intro.) If the plan recommended under sub. (3) (b) or a modification
16thereof of the plan is approved under sub. (3r), the debtor shall make the periodic
17payments
therein provided for
in the plan to the trustee, and may make additional
18payments from time to time to the trustee, and the trustee shall distribute the
19payments proportionally among the creditors listed in the plan, less all of the
20following:
Note: Inserts specific reference.
AB970, s. 132
21Section
132. 128.21 (5) of the statutes is amended to read:
AB970,73,15
1128.21
(5) If the debtor defaults in any payment provided for under the plan
2for a period of more than
thirty 30 days the trustee shall, and before the end of
any
3such the 30-day period may, report the matter to the court with the trustee's
4recommendations
, and the. The court shall
thereupon either dismiss the
5proceedings or, if satisfied from the trustee's report that the debtor is in good faith
6and should be able to make good the default, extend the period of grace for not to
7exceed
thirty 30 days
, at. At the end of
which the grace period
, the trustee shall again
8report to the court and if all defaults have not then been cured the court shall
9forthwith immediately dismiss the proceedings. If the debtor makes preferential
10payments to creditors during the pendency of the proceedings, or appears for any
11reason to be abusing the privileges of this section, the trustee shall promptly report
12the matter to the court and the court may dismiss the proceedings. If the claims of
13all creditors as listed in the plan are satisfied in full, the trustee shall, upon
14completion of the final distribution, report to the court and the court shall
thereupon 15dismiss the proceedings.
Note: Inserts specific references, breaks up long sentence, replaces word form of
number with digits and deletes disfavored terms.
AB970, s. 133
16Section
133. 128.21 (7) of the statutes is amended to read:
AB970,73,2217
128.21
(7) Neither the determination of the amount of any claim for the
18purposes of the plan, nor the acceptance of payments
thereunder under the plan,
19shall affect the right of any creditor to litigate the creditor's claim and obtain
20judgment
thereon on the claim, or the right of the debtor to dispute
it, and the the
21claim. The amount of any judgment shall be substituted by the trustee for the
22amount fixed in the plan.