Insolvency Law - Act 1956

> An  assignee  is  the  person  elected  by  the  creditors  or appointed by the court to whom an insolvent debtor makes an  assignment  of  all  his  property  for  the  benefit  of  his creditors


1.   Those  who  didn’t  file  their  claims  at  least  2  days  prior  to the time appointed for such election
2.   Those claims are barred by the statute of limitations
3.   Secured  creditors  unless  they  surrender  their  security  or lien to the sheriff or receiver or unless they shall first have the value of such security fixed as provided for in Section 59
4.   Holders  of  claims  for  unliquidated  damages  arising  out  of pure tort

IMPORTANT!  The vote requirement is DOUBLE MAJORITY.


> An assignee in insolvency acquires title to the property of the  insolvent  by  virtue  of  the  transfer  of  the  insolvent’s property by the clerk of court
> But this instrument relates back to the commencement of the proceedings in insolvency with the result that the title of  the  assignee  is  determined  as  of  the  date  when  the petition in insolvency is filed
> With   respect   to   property   registered   under   the   Land Registration Law, it is necessary that such proceedings be recorded    in    the    registry    of    deeds    from    their commencement and the assignment is likewise recorded


1.   The   assignee   takes   the   property   in   the   plight   and conditions that the insolvent held it

2.   Upon assignment, the legal title to all the property of the insolvent is vested in the assignee, and the control of the property is vested in the court
3.   All  actions to recover the estate, debts  and effects  of the insolvent shall be brought by the assignee and not by the creditors
4.   The assignment shall—
     a.    Dissolve  any  attachment  levied  within  1  month next    preceding    the    commencement    of    the insolvency proceedings
     b.   Vacate  and  set  aside  judgment  entered  in  any action  commenced  within  30  days  immediately prior    to    the    commencement    of    insolvency proceedings
5.   There is a  cut-off  period—one month in attachment cases and 30 days in judgments entered  in actions  commenced rior to the insolvency proceedings.  A levy of attachment not made within the period specified isn’t dissolved by the insolvency  proceedings  and  the  refusal  of  the  court  to enforce  the  lien  arising  from  such  levy  is  grave  abuse  of discretion.
6.   The plaintiff has the right if the attachment is not dissolved before   the   commencement   of   the   proceedings   in insolvency, or is dissolved by an undertaking given by the defendant, if the claim upon which the attachment suit was commenced is proved against the estate of the debtor.


> After  his  election,  he  is  required  to  give  a  bond  for  the faithful performance of his duties
> To  establish  his  official  character  and  his  right  to  sue  in that capacity, it is incumbent on the assignee to show that the bond required has been given


1.   All  real  and  personal  property,  estate  and  effects  of  the debtor  including  all  deeds,  books,  and  papers  in  relation thereto
2.   Properties fraudulently conveyed
3.   Right of action for damages to real property
4.   The undivided share for interest of the insolvent debtor in property held under co-ownership


1.   Property exempt from execution
2.   Property held in trust
3.   Property    of    the    conjugal    partnership    or    absolute community  so  long  as  said  partnership  or  community exists  except  insofar  as  the  insolvent  debtor’s  obligations have redounded to the benefit of the former
4.   Property  over  which  a  mortgage  or  pledge  exists  unless the creditor surrenders his security or lien
5.   After-acquired   property   except   fruits   and   income   of property owned by the debtor and which had passed to the assignee in insolvency law
6.   Non-leviable  assets  like  a  life  insurance  policy  which doesn’t have cash surrender value
7.   Right of action for tort which is purely personal in nature


1.   To  sue  and  recover  all  the  estate,  assets,  debts,  and claims, belonging to or due to such debtor;
2.   To take in to  his  possession  all the estate  of  such  debtor except property exempt by law from execution,
3.   In  case  of  a  nonresident  or  absconding  or  concealed debtor,  to  demand  and  receive  of  every  sheriff  who  shall have attached any of the property of such debtor, or who shall  have in his possession  any  moneys arising from the sale  of  such  property,  all  such  property  and  moneys,  on paying him his lawful costs and charges for attaching and keeping the same.
4.   To sell, upon order of the court, any of the estate, real and personal, which has come into his possession, and which is vested  in  him  as  such  assignee,  and  on  such  sales  to execute the necessary conveyances and bills of sale.

5.   To  redeem  all  valid  mortgages  and  conditional  contracts, and  all  valid  pledges  of  personal  property,  and  to  satisfy any  judgments  which  may  be  an  encumbrance  on  any property sold by him;  or to  sell such  property, subject to such mortgage, contracts, pledges, judgments, or liens.

6.   To  settle  all  matters  and  accounts  between  such  debtor and his creditors subject to the approval of the court.
7.   Under  the  order  of  the  court  or  judge  appointing  him,  to compound  with  any  person  indebted  to  such  debtor,  and thereupon discharge all demands against such person.
8.   To  recover  from  any  person  receiving  a  conveyance,  gift transfer,  payment,  or  assignment,  made  contrary  to  any provision  of  this  Act,  the  property  thereby  transferred  or assigned; or in case a redelivery of the property can not be had,  to  recover  the  value  thereof  with  damages  for  the


1.   To register the assignment to him of the real estate of the debtor
2.   To  file  a  schedule  and  inventory  of  the  property  of  the debtor
3.   To  convert,  as  speedily  as  possible,  the  estate,  real  and person, into money
     a.    Any disposition requires court approval
     b.   Private sale needs authorization of the court

4.   To  keep  a regular account  of  all moneys received  by him as assignee
     a.    Why is a private sale an exception?  Because there is always room for irregularity.
     b.   Assignee  is  allowed  to  recover  the  expenses  he advanced for.
     c.    There   is   a   distinction   between   claims   and expenses.  As creditor, WATCH OUT!
5.   To  petition  the  court  to  allow  the  private  sale  of  debtor’s property if it appears that it is for the best interest of the estate
6.   To file a just and true account of receipts and payments
7.   To file accounts upon order of the court on motion of two or more creditors
8.   To distribute such dividends as he may be required
9.   To  file  a  final  account  within  one  year  from  the  date  of order of adjudication


1.   Generally—the  law  provides  for  the  reduction  of  the insolvent’s  assets  into  cash  by  means  of  public  sales.  Proceedings are in rem.  The only question of jurisdiction is the  power  of  the  court  over  the  subject  matter  without regard to the parties who may have an interest in it.
2.   Persons  competent  to  purchase—the  insolvent  will  not  be generally allowed to purchase the assets, either in his own name  or  through  a  dummy.    If  he  does  so,  the  property purchased becomes subject to the claims of his creditors. 


> The  provisions  of  Section  37  which  make  the  person coming  within  the  purview  liable  for  double  the  value  of the  property  sought  to  be  disposed  of,  are  not  applicable where  what  has  been  disposed  of  is  the  creditor’s  own credit and not the insolvent’s property


> Parcel  of  the  fund  arising  from  the  assets  of  the  estate, rightfully allotted to share in the fund, whether in the same proportion with other creditor or in a different proportion

> It is paid by the assignee only upon order of the court


> Whenever  any  dividend  has  been  duly  declared,  the distribution of it shall not be stayed or affected by reason of debts being subsequently proved
> However, any creditor proving such a debt shall be entitled to  a  dividend  equal  to  those  already  received  by  other creditors before any further dividend is made to the latter, if  the  failure  to  prove  such  claim  shall  not  have  resulted from his own neglect


Assets  whose title is vested in the debtor—both equitable and legal title.  At least there is beneficial ownership.




Yes.  However, it is not good to have voluntary proceedings. 

Insolvency Law Act 1956 on Assignees

SECTION  29.     Election;  Creditors  holding  security.  —  No creditor  shall  be  entitled  to  vote  for  the  election  of  an assignee unless he shall have filed his claim in the office of the clerk of the court in which the proceedings are pending at  least  two  days  prior  to  the  time  appointed  for  such election.  All  claims  shall  contain  a  statement  showing  the amount  and  nature  of  the  claim  and  security,  if  any.  The claim   shall   be   verified   by   the   claimant,   or   his   duly authorized  agent  or  attorney.  No  claim  barred  by  the statute of limitations 16 shall be proved or allowed against the  estate  of  an  insolvent  debtor  for  any  purpose.  Any person  interested  in  the  estate  of  the  insolvent  may  file exceptions  to  the  legality  of  good  faith  of  any  claim,  by setting forth specifically in writing his interest in the estate, and  the  grounds  of  his  objection  to  such  claim.  Such exceptions  shall  be  verified  by  the  affidavit  of  the  party objecting, or his duly authorized agent or attorney, and the affidavit shall set out that such exceptions are not made for the purpose of delay and are made in good faith in the best interests  of  said  estate.  Exceptions  to  any  claim  must  be filed with the clerk of the court at least one day before the time  appointed  for  the  election  of  an  assignee,  and  such exceptions shall be heard and disposed of by the court, on affidavit  or  other  evidence,  in  a  summary  manner,  before the  election  of  an  assignee.  No  creditor  or  claimant  who holds any mortgage, pledge, or lien of any kind whatever as security  for  the  payment  of  his  claim  or  attachment  or execution  on property  of the debtor duly  recorded and  not dissolved  under  this  Act  shall  be  permitted  to  vote  at  the election of the assignee any part of his secured claim unless he  shall  first  have  the  value  of  such  security  fixed  as provided section fifty-nine of this Act, or shall surrender to the sheriff or receiver of the estate of the insolvent, if there be a receiver, all such property, or assign such lien to such sheriff  or  receiver.  The  surrender  or  assignment  of  such security or lien shall be for the benefit of all creditors of the estate of the insolvent. The value of such security, if fixed by  the  court,  shall  be  so  fixed  at  least  one  day  before  the day  appointed  for  the  election  of  an  assignee,  in  which event  the  claimant  may  prove  his  demand  as  provided  in this section for any unsecured balance, subject to the filing of exceptions  as in all other claims.

SECTION  30.     Election  of  assignee  in  open  court.  —  At  a meeting of the creditors in open court or, if the court is not in session, in the presence of the judge or the clerk of the court,  those  being  entitled  to vote,  as  provided  by  section twenty-nine,  shall  proceed  to  the  election  of  an  assignee. The majority of the creditors who have proven their claims, such  majority  being  both  in  number  and  amount,  must concur for the election of an assignee. The clerk of the court shall  keep  a  minute  of  the  deliberations  of  said  creditors, and  of  the  election  and  appointment  of  the  assignee,  and enter  the  same  upon  the  records  of  the  court,  and,  in  the absence  of  the  judge,  shall  send  a  copy  of  such  record  to him at the place where he may be found. The assignee shall file,  within  five  days,  unless  the  time  be  extended  by  the court,  with  the  clerk,  a  bond,  in  an  amount  to  be  fixed  by the court, to the Government of the Philippine Islands, with two or more sufficient sureties, approved by the court, and conditioned  upon  the  faithful  performance  of  the  duties devolving  upon  him.  The  bond  shall  not  be  void  upon  the first recovery, but may be sued upon from time to time by any  person  aggrieved,  in  his  own  name,  until  the  whole penalty  be  exhausted.  The  sureties  on  such  bond  may  be required   to   justify   as   to   their   sufficiency   upon   the application of any party interested.

SECTION  31.     Appointment  of  assignee  by  court.  —  If,  on the day appointed for the meeting, creditors do not attend, or fail or refuse to elect an assignee, or if, after election, the assignee shall fail to qualify within the proper time, or if a vacancy  occurs  by  death  or  otherwise,  the  court  shall appoint  an  assignee  and  fix  the  amount  of  his  bond.

SECTION 32.    Transfer of property to assignee. — As soon as  an  assignee  is  elected  or  appointed  and  qualified,  the clerk  of  the  court  shall,  by  an  instrument  under  his  hand and seal of the court, assign and convey to the assignee all the  real  and  personal  property,  estate,  and  effects  of  the debtor  with  all  his  deeds,  books,  and  papers  relating thereto,  and  such  assignment  shall  relate  back  to  the commencement of the proceedings in insolvency, and shall relate  back  to  the  acts  upon  which  the  adjudication  was founded,  and  by  operation  of  law  shall  vest  the  title  to  all such property, estate, and effects in the assignee, although the  same  is  then  attached  on  mesne  process,  as  the property  of  the  debtor.  Such  assignment  shall  operate  to vest in the assignee all of the estate of the insolvent debtor not exempt by law from execution. 17 It shall also dissolve any attachment levied within one month next preceding the commencement  of  the  insolvency  proceedings  and  vacate and   set   aside   any   judgment   entered   in   any   action commenced  within  thirty  days  immediately  prior  to  the commencement of insolvency proceedings and shall vacate and set aside any execution issued thereon and shall vacate and set aside any judgment entered by default or consent of the  debtor  within  thirty  days  immediately  prior  to  the commencement      of      the      insolvency      proceedings.

SECTION  33.     Recovery  and  action  of  assignee.  —  The assignee shall have the right to recover all the state debts, and   effects   of   said   insolvent.   If,   at   the   time   of   the commencement  of  proceeings  in  insolvency,  an  action  is pending  in  the  name  of  the  debtor,  for  the  recovery  of  a debtor  other  thing  which  might  or  ought  to  pass  to  the assignee by the assignment, the assignee shall be allowed and  admitted  to  prosecute  the  action,  in  like  manner  and with  like  effect  as  if  it  had  been  originally  commenced  by him.  If  there  are  any  rights  of  action  in  favor  of  the insolvent for damages, on any account, for which an action is   not   pending,   the   assignee   shall   have   the   right   to
prosecute  the  same  with  the  same  effect  as  the  insolvent might  have  done  himself  if  no  proceedings  in  insolvency had  been  instituted.  If  any  action  or  proceeding  in  which the  insolvent  is  defendant  is  pending  at  the  time  of  the adjudication,  the  assignee  may  defend  the  same  in  the same  manner  and  with  like  effect  as  it  might  have  been defended by the insolvent. In a suit prosecuted or defended by the assignee, a certified copy of the assignment made to him shall be conclusive evidence of  his authority to sue  or defend.

SECTION  34.     Registration  of  assignment  to  assignee.  — The  assignee  shall,  within  one  month  after  the  making  of the  assignment  to  him,  cause  the  same  to  be  recorded  in every  province  or  city  within  the  Philippine  Islands  where any  real  estate  owned  by  the  debtor  is  situated,  and  the record of such assignment, or a duly certified copy thereof, shall  be  conclusive  evidence  thereof  in  all  courts.  If  the schedule and inventory required by this Act have not been filed  by  the  debtor  the  assignee  shall,  within  one  month after  his  election,  prepare  and  file  such  schedule  and inventory from the best information he can obtain, and shall thereupon   personally   deliver   notice   or   send   same   by registered  mail,  postage  prepaid,  to  all  creditors  named  in such   schedule,   whose   claims   have   not   been   filed,   to forthwith prove their demands.

SECTION  35.     Resignation  of  assignee.  —  Any  assignee may  at  any  time,  by  writing  filed  in  court,  resign  his appointment, having first settled his accounts and delivered up  all  the  deeds,  vouchers,  books  of  account,  notes,  bills, bonds,  and  securities  of  the  debtor  and  all  his  real  and personal property, estate, and effects to such successor as the  court  shall  appoint:  Provided,  That  if,  in  the  discretion of the court, the circumstances of the case require it, upon good cause being shown, the court may, at any time before such settlement of account and delivery of the estate shall have  been  completed,  revoke  the  appointment  of  such assignee  and  appoint  another  in  his  stead.  The  liability  of the outgoing assignee, or of the sureties on his bond, shall not  be  in  any  manner  discharged,  released,  or  affected  by such      appointment      of      another      in      his      stead.

SECTION   36.      The   said   assignee   shall   have   power:

1.     To  sue  and  recover  all  the  estate,  assets,  debts,  and claims, belonging to or due to such debtor; and no set-off or counterclaim   shall   be   allowed   in   any   such   for   debts contracted by the insolvent  within thirty days  immediately preceding  the  filing  of  the  petition  of  insolvency  except  in case  of  creditors  specified  in  section  fifty  of  this  Act.

2.     To  take  in  to  his  possession  all  the  estate  of  such debtor  except  property  exempt  by  law  from  execution,  2. whether   attached   or   delivered   to   him,   or   afterwards discovered,    and    all    books,    vouchers,    evidence    of indebtedness,   and   securities   belonging   to   the   same. 

3.     In  case  of  a  nonresident  or  absconding  or  concealed debtor,  to  demand  and  receive  of  every  sheriff  who  shall have  attached  any  of  the  property  of  such  debtor,  or  who shall  have  in  his  possession  any  moneys  arising  from  the sale  of  such  property,  all  such  property  and  moneys,  on paying  him  his  lawful  costs  and  charges  for  attaching  and keeping the same.

4.     From  time  to  time  to  sell  at  public  auction  after advertisement  in  the  manner  provided  by  subsections  (1), (2),  and  (3)  of  section  four  hundred  and  fifty-four  of  the Code of Civil Procedure, 19 upon order of the court, any of the  estate,  real  and  personal,  which  has  come  into  his possession,  and  which  is  vested  in  him  as  such  assignee, and  on  such  sales  to  execute  the  necessary  conveyances and bills of sale.

5.      To   redeem   all   valid   mortgages   and   conditional contracts, and all valid pledges of personal property, and to satisfy  any  judgments  which  may  be  an  encumbrance  on any property sold by him; or to sell such property, subject to  such  mortgage,  contracts,  pledges,  judgments,  or  liens.

6.    To settle all matters and accounts between such debtor and  his  creditors  subject  to  the  approval  of  the  court.

7.    Under the order of the court or judge appointing him, to compound  with  any  person  indebted  to  such  debtor,  and thereupon  discharge  all  demands  against  such  person.

8.     To  recover  from  any  person  receiving  a  conveyance, gift transfer, payment, or assignment, made contrary to any provision  of  this  Act,  the  property  thereby  transferred  or assigned; or in case a redelivery of the property can not be had,  to  recover  the  value  thereof  with  damages  for  the detention.

SECTION 37.    Embezzlement, etc. — If any person, before the    assignment    is    made,     having    notice    of    the commencement of the proceedings in insolvency, or having reason to believe that insolvency proceedings  are about to be   commenced,   embezzles   or   disposes   of   any   of   the moneys,  goods,  chattels,  or  effects  of  the  insolvent,  he  is chargeable   therewith,   and   liable   to   an   action   by   the assignee for double the value of the property so embezzled or  disposed  of,  to  be  recovered  for  the  benefit  of  the insolvent's estate.

SECTION   38.      Penalties   and   forfeitures.   —   The   same penalties,    forfeitures,    and    proceedings    by    citation, examination,  and  commitment  shall  apply  on  behalf  of  an assignee  against  persons  suspected  of  having  concealed, embezzled, conveyed away, or disposed  of any property  of the  debtor,  or  of  having  possession  or  knowledge  of  any deeds,  conveyances,  bonds,  contracts,  or  other  writings which  relate  to  any  interest  of  the  debtor  in  any  real  or personal  estate  as  provided  in  the  case  of  estates  of deceased  persons  in  sections  seven  hundred  and  nine  to seven  hundred  and  thirteen,  inclusive,  of  the  Code  of  Civil Procedure.

SECTION  39.     Conversion  of  property  into  money.  —  The assignee  shall  as  speedily  as  possible  convert  the  estate, real  and  personal,  into  money.  He  shall  keep  a  regular account of all moneys received by him as assignee, to which every creditor or other person interested therein may, at all reasonable  times,  have  access.  No  private  sale  of  any property of the estate of an insolvent debtor shall be valid unless made under the order of the court, upon a petition in writing, which shall set forth the facts showing the sale to be necessary. Upon filing the petition, notice of the hearing thereof  of  at  least  ten  days  shall  be  given  by  publication and  mailing,  in  the  same  manner  as  is  provided  in  section nineteen of this Act. If it appears that a private sale is for the best interests of the estate, the court shall order it to be made.

SECTION  40.     Perishable  property.  —  In  all  cases  when  it appears  to  the  satisfaction  of  the  court  that  the  estate  of the debtor, or any part thereof, is of a perishable nature, or is  liable  to  deteriorate  in  value,  or  is  disproportionately expensive  to  keep,  and  that  the  insolvent's  estate  will suffer if sufficient time elapses for the giving of notice, the court may order the same to be sold in such manner and at such  time  as  may  be  deemed  most  expedient,  under  the direction  of  the  sheriff,  receiver,  or  assignee,  as  the  case may  be,  who  shall  hold  the  funds  received  in  place  of  the property    sold    until    further    order    of    the    court.

SECTION   41.      Outstanding   debts,   etc.   due   estate.   — Outstanding  debts,  or  other  property  due  or  belonging  to the estate,  which can  not be collected and received by the assignee  without  unreasonable  or  inconvenient  delay  or expense,  may  be  sold  and  assigned  in  like  manner  as  the remainder of the estate. If there are any rights of action for damages    in    favor    of    the    insolvent    prior    to    the commencement  of  the  insolvency  proceedings,  the  same may,  with  the  approval  of  the  court,  be  compromised.

SECTION   42.      Expenses   and   commissions;   Division   of compensation.  —  Assignees  shall  be  allowed  all  necessary expenses  in  the  care,  management,  and  settlement  of  the estate, and shall be entitled to charge and receive for their services  commissions  upon  all  sums  of  money  coming  to  their hands and accounted for by them, as follows: For the first thousand pesos, at the rate of seven per centum; for all above  that  sum  and  not  exceeding  ten  thousand  pesos,  at the rate  of five per centum; and for all above  that sum, at the rate of four per centum: Provided, however, That if the person  acting  as  assignee  was  receiver  of  the  property  of the   estate   pending   the   election   of   an   assignee,   any compensation   allowed   him   as   such   receiver   shall   be deducted  from  the  compensation  to  which  he  otherwise would  be  entitled  as  such  assignee:  And  provided  further, further  That  if  there  should  be  two  or  more  assignees  the court shall order an equitable division of the compensation herein provided, and if for any reason an assignee's term is completed  before  the  final  settlement  of  the  estate  and  a successor is appointed the court shall not allow to any such assignee  prior  to  the  settlement  of  the  estate  an  amount exceeding  four  per  centum  of  the  sums  of  money  coming into  his  hands.  Upon  the  final  settlement  of  the  estate  an equitable distribution of the compensation of the assignees shall be made.

SECTION    43.       Filing    of    accounts    with    vouchers, statements, etc.; Decisions of court upon claims; Additional accounts.  —  At  the  expiration  of  three  months  from  the appointment of the assignee in any case, or as much earlier as the court may direct, a time and place shall be fixed by the  court  at  which  the  assignee  shall  file  just  and  true accounts  of  all  his  receipts  and  payments  with  proper vouchers,  verified  by  his  oath  and  a  statement  of  the property    outstanding,    specifying    the    causes    of    its outstanding,    also    what    debts    or    claims    are    yet undetermined,   and   stating   what   sum   remains   in   his possession, and shall accompany the same with an affidavit that notice by registered mail has been given to all creditors named  in  the  schedule  filed  by  the  debtor  or  the  assignee that said accounts will be heard at a time specified in such notice, which time shall not be less than two nor more than eight weeks from the filing of such accounts. At the hearing the court shall audit the accounts of the assignee, and any person  interested  may  appear  and  file  exceptions  thereto and  contest  the  same.  The  court  shall  thereupon  confirm said accounts if they shall be found to be correct, or order the  same  corrected  if  errors  shall  be  found  therein.  The court  shall  also,  in  such  hearing,  determine  the  property which  must  be  deducted  from  the  estate  as  another's, under  the  provisions  of section forty-eight of this Act, and the right of the claimants to participate in the dividend, and may order a dividend paid to those creditors whose claims have  been  proven  and  allowed.  The  decision  of  the  court
theretofore   rendered  as  to  whether  any  claimant   was entitled to vote for an assignee shall not be conclusive upon the right  of the claimant to  share in such dividend; but all claimants who  were so allowed  to  vote shall participate in such dividend unless objections were filed to the same prior to  such  hearing.  If  any  such  objections  have  been  filed against any claim, or if any claimant was refused the right to  vote,  the  court  shall  determine  said  objections  and  the rights  of  all  such  claimants  in  such  hearing  and  refuse  or allow   the   same   before   the   declaration   of   a   dividend. Thereafter,  further  accounts,  statements,  and  dividends shall be made in like manner as often as occasion requires: Provided, however, That it shall be the duty of the assignee to file his final account within one year from the date of the order  of  adjudication,  unless  the  court,  after  notice  to creditors,  shall  grant  further  time,  upon  a  satisfactory showing  that  great  loss  and  waste  would  result  to  the estate  by  reason  of  the  conversion  of  the  property  into money within said time, or that it has been impossible to do so by reason of litigation.

SECTION 44.    Motion to require accounts, filing of . — The court may at any time, upon the motion of any two or more creditors,  require  the  assignee  to  file  his  account  in  the manner   and   upon   giving   the   notice   specified   in   the preceding   section,   and   if   he   has   funds   subject   to distribution he may be required to distribute them  without delay.

SECTION 45.    Rights of creditors late in proving claims. — Whenever   any   dividend   has   been   duly   declared,   the distribution of it shall not be stayed or affected by reason of debts being subsequently  proved, but any creditor  proving such  a  debt  shall  be  entitled  to  a  dividend  equal  to  those already  received  by  the  other  creditors  before  any  further dividend  is  made  to  the  latter,  if  the  failure  to  prove  such claim   shall   not   have   resulted   from   his   own   neglect.

SECTION  46.     Failure,  neglect  or  refusal  by  assignee.  — Should   the   assignee   refuse   or   neglect   to   render   his accounts as required by sections forty-three and forty-four of this Act, or refuse or neglect to pay over a dividend when he  shall  have,  in  the  opinion  of  the  court,  sufficient  funds for that purpose, or shall neglect or  mismanage the estate in any manner whatever or violate any of the provisions of this   Act,   the   court   shall   immediately   discharge   such assignee  from  his  trust,  and  shall  appoint  another  in  his place.  The  assignee  so  discharged  shall  forthwith  deliver over  to  the  assignee  appointed  by  the  court  all  the  funds, property,  books,  vouchers,  or  securities  belonging  to  the insolvent, and he shall not be entitled for his services to the compensation       provided       in       section       forty-two.

SECTION   47.      Final   account.   —   Preparatory   to   the settlement  of  the  estate,  the  assignee  shall  file  his  final account  in  the  court,  accompanying  the  same  with  an affidavit that a notice by registered mail has been given to all  creditors  who  have  proved  their  claims,  that  he  will apply  for  a  settlement  of  his  account  and  for  a  discharge from  all  liability  as  assignee  at  a  time  specified  in  such notice, which time shall not be less than two nor more than eight weeks from such filing. At the hearing the court shall audit  the  account,  and  any  person  interested  may  appear and  file  exceptions  in  writing  and contest  the  same.  The court  thereupon  shall  settle  the  account,  and  order  a dividend  of  any  portion  of  the  estate,  if  any,  remaining undistributed,  and  shall  discharge  the  assignee,  subject  to compliance with the order of the court, from all liability as assignee to any creditor of the insolvent.