In re Hinshaw

Clark Jesse Hinshaw and Stella Hinshaw on August 3, 1934, filed petitions for extension or composition on their debts under Section 75 of the Bankruptcy Act, 11 U.S.C.A. § 203 . The petitions were approved on August 6, 1934, and referred to J. J. Dwyer, Conciliation Commissioner of Orange County. On October 12, 1934, a written extension proposal was submitted by the debtors and filed. This proposal was accepted by all of the creditors. The agreement provided that Orville E. Hensley, one of the creditors, should take a new trust deed and note for $25,000 with reduced interest, and with the maturity of the note October 1, 1940; that all the other creditors should take a second trust deed and note for $6,567.21. No proceedings for confirmation of the extension were ever filed, but when this agreement was reached, all creditors, both secured and unsecured, and the debtors filed with Commissioner Dwyer a request. that the proceedings should be dismissed, and on December 4, 1934, Commissioner Dwyer filed in the District Court a petition for dismissal. This petition was granted on December 5, by the District Court.

The debtors paid the interest for the years 1935, 1936, and 1937, but…