The Position of a Trustee in Bankruptcy with Reference to Unfiled or Unrecorded Chattel Mortgages and Conditional Sale Contracts

Since the enactment of the first bankruptcy act the courts have very frequently been called upon to consider the precise position of the trustee in bankruptcy, with reference to his ability to raise the question of the invalidity of transfers or liens made or created by the bankrupt prior to the proceedings in bankruptcy. The phase of this question indicated by the title of this article is possibly of more interest than the rest of the general subject, because of the changes, or to be more exact, the supposed changes, through which the law has passed. And if the law can be considered as settled even now, it is only by reason of a comparatively recent decision by the United States Supreme Court. A trustee in bankruptcy occupies a sort of dual position; in some respects he is considered as representing the bankrupt, while in others he is regarded as acting for and in the position of the creditors.

In attacking the validity of liens of the nature herein considered he is regarded as enforcing the rights of creditors. It is therefore important to determine just what rights creditors have.