1. A debtor making an assignment shall, at the date thereof or within twenty days thereafter, cause to be made, and filed with the county clerk of the county where such assignment is recorded, and file a duplicate thereof with the assignee, an inventory or schedule containing:

Terms Used In N.Y. Debtor and Creditor Law 4

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • judge: when used in this article shall apply equally to a county judge of the county within which the assignment is recorded and to justices of the supreme court, and the term "court" when used in this article shall, in like manner, apply to the county court of such county and to the supreme court. See N.Y. Debtor and Creditor Law 2
  • Oath: A promise to tell the truth.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

(a) The name, occupation, place of residence, and place of business, of such debtor;

(b) The name and place of residence of the assignee;

(c) A full and true account of all the creditors of such debtor, stating the last known place of residence or business of each, if known, if unknown the fact to be stated, the sum owing to each, with the true cause and consideration therefor, and a full statement of any existing security for the payment of the same;

(d) A full and true inventory of all such debtor’s estate at the date of such assignment, both real and personal, in law and in equity, with the incumbrances existing thereon, and the actual value of the same according to the best knowledge of such debtor; and a claim for such exemptions as he may be entitled to;

(e) An affidavit made by such debtor, that the same is in all respects just and true.

2. In case such debtor shall omit, neglect or refuse to make and file such inventory or schedule within the twenty days required, the assignee named in such assignment shall, within thirty days after the date thereof, cause to be made, and filed as aforesaid such inventory or schedule as above required, in so far as he can; and for such purpose the judge shall, at any time, upon the application of such assignee, compel by order such delinquent debtor, and any other person to appear before him and disclose, upon oath, any knowledge or information he may possess, necessary to the proper making of such inventory or schedule. The assignee shall verify the inventory and schedule so made by him, to the effect that the same is in all respects just and true to the best of his knowledge and belief.

3. In case the said assignee shall be unable to make and file such inventory or schedule, within said thirty days, the judge may, upon application upon oath, showing such inability, allow him such further time as shall be necessary, not exceeding sixty days. If the assignee fail to make and file such inventory or schedule within said thirty days or such further time as may be allowed, the judge shall require, by order, the assignee forthwith to appear before him, and show cause why he should not be removed. Any person interested in the trust estate may apply for such order and demand such removal. The books and papers of such delinquent debtor shall at all times be subject to the inspection and examination of any creditor. The judge is authorized, by order, to require such debtor or assignee to allow such inspection or examination. Disobedience to such order is a contempt, and obedience to such order may be enforced by attachment.

4. The assignor shall comply with all lawful orders of the judge; examine the correctness of all claims presented against his estate, if ordered by the judge so to do, and if any is incorrect or false notify his assignee thereof immediately; deliver to his assignee all his books, papers and records; execute and deliver such papers as shall be ordered by the judge; and execute and deliver to his assignee transfers of all his property outside the state of New York. When so ordered by the judge, the assignor shall attend before the assignee, a referee or the court in the county where the assignor resides, and submit to an examination under oath concerning the conducting of his business, the cause of his inability to pay his debts, his dealings with his creditors and other persons, the amount, kind and whereabouts of his property, and

all matters which may affect the administration and settlement of his estate.

5. In any examination of the assignor ordered by the judge pursuant to subdivision four of this section, the court may confer immunity in accordance with the provisions of section 50.20 of the criminal procedure law; provided, however, that no immunity shall be conferred except upon twenty-four hours prior written notice to the appropriate district attorney having an official interest therein.

6. The court may allow as an administrative expense one reasonable fee, irrespective of the number of attorneys employed, for legal services rendered to the assignor in preparing the assignment and assisting the assignor to comply with his duties in respect of schedules and inventory. If a debtor, in contemplation of making a general assignment for the benefit of creditors, shall pay money or transfer property, directly or indirectly, to an attorney for services rendered or to be rendered in connection with the assignment, the transaction shall be reexamined by the court on petition of the assignee or any creditor and shall be held valid only to the extent of a reasonable amount to be determined by the court, and the excess may be recovered by the assignee for the benefit of the estate.