Planck v. Schermerhorn

Application for the appointment of a receiver of the property of the judgment debtor of the complainant, and also of certain property assigned by him to his co-defendant. The Chancellor decided that an assignment by the assignor attempts ^o appropriate a part of his property for the use of his wife, to pay a claim which she could not have J recovered from him, by any suit or proceeding, is void as against creditors of the assignor, provided his property, at the date of the assignment was not sufficient to pay all his other debts, as well as the claim of his wife, so far as it was secured by the assignment; inasmuch as such an assignment would deprive the creditors of the power of ever obtaining payment of their debts.

Held also, that under the section of the statute declaring it fraudulent for a debtor to make an assignment of his property for the purpose of delaying creditors, if a person has sufficient means to pay all his debts, it is a fraud upon his creditors for him to assign all his property to an assignee, and to authorize him to employ the proceeds thereof in defending suits which may be brought against the assignor by his creditors, to recover their debts.

A power in an assignment, to the assignee to lease or mortgage the estate assigned is void.

And so is a reservation of the right in the assignor to name the successor of the assignee in case he shall wish to resign the trust; because it may deprive the court of the power to remove the trustee and appoint another in his place, upon the application of creditors.

Application granted, as to the assigned property other than that embraced in the assignment of 1842 and in the assignment to Me