In re Knauft

The debtor herein on August 16, 1934, filed her petition under the provisions of section 75 of the Bankruptcy Act, as amended, 11 USCA § 203, alleging that she was a farmer and seeking composition and extension with her creditors. She made an offer to the creditors at a meeting held before the conciliation commissioner, which was refused, whereupon she amended her petition to take advantage of the provisions of subdivision (s) of the same section. The referee, on the motion of Louisa O. Spence, dismissed the petition on the ground that the court had no jurisdiction over the alleged farm property involved. The debtor thereupon brought her petition to the court for review of the referee’s order. Argument was made on the part of the debtor and the moving petitioner and the matter submitted for decision.

The admitted facts are that Louisa O. Spence held a first mortgage against all of the ranch properties scheduled by the debt- or. That mortgage, on November 27, 1933, was foreclosed by a decree entered in the superior court of the state of California, and on December 30, 1933, sale was had under the foreclosure decree and a certificate of sale issued to the mortgagee, Louisa O.…