Long v. Bullard/Opinion of the Court

It perhaps sufficiently appears that a determination of the question as to the effect of the discharge in bankruptcy upon the right of Bullard to enforce a lien upon the property in existence at the time of the commencement of the proceedings in bankruptcy was necessarily involved in the decision of the supreme court which is here under review, and that this decision was adverse to the right set up by Long. This being the case, we have jurisdiction, but there cannot be a doubt of the correctness of the decision. By section 5119 of the Revised Statutes the discharge releases the bankrupt only from debts which were or might have been proved, and by section 5075 debts secured by mortgage or pledge can only be proved for the balance remaining due after deducting the value of the security, unless all claim upon the security is released. Here the creditor neither proved his debt in bankruptcy nor released his lien. Consequently his security was preserved not withstanding the bankruptcy of his debtor. McHenry v. La Societe Francaise, 95 U.S. 58; Dudley v. Eastern, 104 U.S. 103; Porter v. Lazear, 109 U.S. 86; S.C.. 3 Sup. Ct. Rep. 58. The dispute in the court below was as to the existence of the lien at the time of the commencement of the proceedings in bankruptcy. That depended entirely on the state laws, as to which the judgment of the state court is final and not subject to review here. The setting apart of the homestead to the bankrupt under section 5045 of the Revised Statutes did not relieve the property from the operation of liens created by contract before the bankruptcy. It is not the decree in this case which constitutes the lien on the property, but the conveyance of Long and wife before the bankruptcy.

The judgment is affirmed.