Mary Wagner Thompson v. John O. England, as Trustee of the Estate of James Leo Thompson, Bankrupt

This is an appeal from a decision of the United States District Court confirming the Referee in Bankruptcy’s order disallowing appellant’s claim.

Appellant loaned her husband, the bankrupt, $12,000 of her separate ■property to be repaid from the proceeds of his business “as soon as said business ■is in a sound, financial position.” In order for a creditor to share iri the assets of a bankrupt he must have a claim both :provable under one or more of the overlapping subdivisions of Section 63 of the Bankruptcy Act and allowable under Section 57, 11 U.S.C.A. §§ 93 , 103. Appellant asserts that her claim is provable -under any of four subdivisions of See.tion 63. The Referee and the District Court disagreed with her contentions.

I. ■ Appellant’s Contingent Claim Is Not Provable Under Section 63, sub. a (8) of the Bankruptcy Act.

' ■ [2,3] Appellant argues that her ■claim should have been allowed as a “con-tingent claim” under Section 63, sub. a (8) of the Bankruptcy Act, 11 U.S.C.A. § 103 , sub. a(8). Her claim does comply with that section since it is contingent upon the business being in a sound financial position, and so it is a “provable claim” under the act. However, claims…