AMEND THE BANKRUPTCY ACT, APPROVED JULY 1, 1898 33

of bankruptcy shall be taken to be the date of the entry of the order directing that bankruptcy be proceeded with.

SEC. 624. The petition shall be accompanied

(1) by a statement of the executory contracts of the debtor[; (2) by], and the schedules and statement of affairs, if not previously filed: Provided, however, That if the debtor files with the petition a list of his creditors and their addresses and a summary of his assets and liabilities, the court may, on application by the debtor, grant for cause shown further time, not exceeding ten days, for filing the statement of the executory contracts and the schedules and statement of affairs, and such time shail not further be extended except for cause shown and on such notice and to such person8 as the court may direct; and

[(3)] (2) where a petition is filed under section 622 of this Act, by payment to the clerk of $15 to be distributed, $10 to the Treasury of the United States for deposit in the referees' salary fund and $5 to the clerk, in lieu of the fees of $17 and $8 as prescribed in sections 40 and 52 of this Act: Provided, however, That such fees may be paid in installments, if so authorized by General Order of the Supreme Court of the United States.

[SEC. 643. If the time for filing claims in a pending bankruptcy proceeding has expired prior to the filing of a petition under this chapter, claims provable under section 63 of this Act and not filed within the time prescribed by subdivision n of section 57 of this Act, shall not be allowed in the proceedings or participate in a plan under this chapter, and shall not be allowed in the bankruptcy proceeding when reinstated as provided in this chapter.]

SEC. [644] 643. Upon the entry of an order under the provisions of this chapter directing that bankruptcy be proceeded with, only claims for taxes legally due and owing to the United States or any State or any subdivision thereof at the time of the filing of the original petition under this Act and such claims as are provable under section 63 of this Act shall be allowed, and, except as provided in section 643 of this Act, claims not already filed may be filed within three months after the first date set for the first meeting of creditors, held pursuant to section 55 of this Act, or, if such date has previously been set, then within three months after the mailing of notice to creditors of the entry of the order directing that bankruptcy be proceeded with.]; and, as to any such claims not already duly filed, where the petition under this chapter was filed under section 621 of this Act and an order setting the first date for the first meeting of creditors was made before the filing of such petition, the date of mailing of notice to creditors of the entry of the order directing that bankruptcy be proceeded with shall, for the purposes of subdivision n of section 57 of this Act, be deemed to be the first date set for the first meeting of creditors: Provided, however, That if the time for filing claims in a pending bankruptcy proceeding had expired prior to the filing of a petition under this chapter, claims not filed within the time prescribed or as permitted by subdivision n of section 57 of this Act shall not be allowed in the reinstated bankruptcy proceeding.

SEC. 656 (a) The court shall confirm a plan if satisfied that(1) the provisions of this chapter have been complied with;

(2) it is for the best interests of the creditors and is feasible;

[(3) it is fair and equitable, and feasible;]

(4)] (8) the debtor has not been guilty of any of the acts or failed to perform any of the duties which would be a bar to the discharge of [a] the bankrupt; and [(5)] (4) the proposal and its acceptance are in good faith and have not been made or procured by any means, promises, or acts forbidden by this Act.

Confirmation of a plan shall not be refused solely because the interest of a debtor will be preserved under the plan.

SEC. 660. Upon compliance by the debtor with the provisions of the plan and upon completion of all payments to be made thereunder, the court shall enter an order discharging the debtor from all his debts and liabilities provided for by the plan [and all debts denied participation in the plan by section 643 of this Act.] but excluding such debts as [which] are not dischargeable under section 17 of this Act held by creditors who have not accepted the plan.

SEC. 661. If at the expiration of three years after the confirmation of a plan the debtor has not completed his payments thereunder, the court may nevertheless, upon the application of the debtor and after hearing upon notice, if satisfied that the failure of the debtor to complete his payments was due to circumstances for which he could not be justly held accountable, enter an order discharging the debtor from all his debts and liabilities provided for by the plan, [and all debts denied participation in the plan by section 643 of this Act, but excluding such debts as [which] are not dischargeable under section 17 of this Act held by creditors who have not accepted the plan.

34 AMEND THE BANKRUPTCY ACT, APPROVED JULY 1, 1898

SEC. 666. If the statement of the executory contracts and the schedules and statement of affairs, as provided by paragraph (1) of section 624 of this Act, are not duly filed, or if a plan is not proposed at the meeting of creditors or within such further time as the court may fix, or if the plan is withdrawn or abandoned prior to its acceptance, or if the plan is not accepted at the meeting of creditors or within such further time as the court may fix, or if the deposit required under this chapter and under the plan is not made or the application for confirmation is not filed within the time fixed by the court, or if confirmation of the plan is refused, or if after confirmation a debtor defaults in any of the terms of the plan, or if the plan terminates by reason of the happening of a condition specified in the plan, the court shall——.

SEC. 669. Where, after the confirmation of a plan, the court shall enter an order directing that bankruptcy be proceeded with

(1) the trustee shall, upon his appointment and qualification, be vested with the title to all the property of the debtor as of the date of the entry of the order directing that bankruptcy be proceeded with:

(2) the unsecured debts incurred by the debtor after the confirmation of the plan and before the date of the entry of the final order directing that bankruptcy be proceeded with shall, unless and except as otherwise provided in the plan or in the order confirming the plan, share on a parity with the prior unsecured debts of the same classes, provable in the ensuing bankruptcy proceeding, and for such purpose the prior unsecured debts shall be deemed to be reduced to the amounts respectively provided for them in the plan or in the order confirming the plan, less any payment made thereunder; and

(3) the provisions of chapters I to VII, inclusive, of this Act shall, insofar as they are not inconsistent or in conflict with the provisions of this section, apply to the rights, duties, and liabilities of the creditors holding debts incurred by the debtor after the confirmation of the plan and belfore the date of the final order directing that bankruptcy be proceeded with, and of all persons with respect to the property of the debtor, and, for the purposes of such application, the date of bankruptcy shall be taken to be the date of the entry of the order directing that bankruptcy be proceeded with.

SEC. 55. (a) All Acts or parts of Acts inconsistent with any provisions of this amendatory Act are hereby repealed.

(b) If any provision of this amendatory Act or the application thereof to any person or circumstances is held invalid. such invalidity shall not affect other provisions or applications of this amendatory Act which can be given effect without the invalid provision or application, and to this end the provisions of this amendatory Act are declared to be severable.

SEC. 56. EFFECT OF THE AMENDATORY ACT.-(a) Nothing herein contained shall have the effect to release or extinguish any penalty, forfeiture, or liability incurred under any Act or Acts of which this Act is amendatory.

(b) The provisions of this amendatory Act shall govern proceedings so far as practicable and applicable in cases pending when it takes effect; but proceedings in cases then pending to which the provisions of this amendatory Act are not applicable shall be disposed of conformably to the provisions of said Act approved July 1, 1898, and the Acts amendatory thercof and supplementary thereto.

SEC. 57. This amendatory Act shall take effect and be in force on and after three months from the date of its approval.

438

Public Law 457

PUBLIC LAW 457-JULY 7, 1952

[66 STAT.

CHAPTER 580.

amendment.

AN ACT

To amend section 40 of the Bankruptcy Act, so as to increase and fix the salary of full-time referees and to authorize increased salaries for part-time referees.

Be it enacted by the Senate and House of Representatives of the Bankruptcy Act, United States of America in Congress assembled, That section 40a of the Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States", approved July 1, 1898, as amended, is amended to read as follows:

80 Stat. 556 11 USC 68.

"SEC. 40. COMPENSATION OF REFEREE'S SALARY AND EXPENSE FUNDS; RETIREMENT OF REFEREES. a. Referees shall receive as full compensation for their services salaries to be fixed by the conference, in the light of the recommendations of the councils, made after advising with the district judges of their respective circuits, and of the Director, at rates not more than $12,500 per annum for full-time referees, and not more than $6,000 per annum for part-time referees. In fixing the amount of salary to be paid to a referee, consideration shall be given to the average number and the types of, and the average amount of gross assets realized from, cases closed and pending in the territory which the referee is to serve, during the last preceding period of ten years, and to such other factors as may be material. Disbursement of such salaries shall be made monthly by or pursuant to the order of

the Director."

Approved July 7, 1952.

Mr. MCCARRAN, from the Committee on the Judiciary, submitted the

following

REPORT

[To accompany S. 2240]

The Committee on the Judiciary, to which was referred the bill (S. 2240), to amend section 40 of the Bankruptcy Act, so as to increase and fix the salary of full-time referees and to authorize increased salarics for part-time referees, having considered the same, reports favorably thereon, with an amendment, and recommends that the bill, as amended, do pass.

AMENDMENT

Strike out all after the enacting clause and insert in lieu thereof the following:

That section 40a of the Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States", approved July 1, 1898, as amended, is amended to read as follows:

"SEC. 40. COMPENSATION OF REFEREES; REFEREES' SALARY AND EXPENSE FUNDS; RETIREMENT OF REFEREES. (a) Referees shall receive as full compensation for their services salaries to be fixed by the conference, in the light of the recommendations of the councils, made after advising with the district judges of their respective circuits, and of the Director, at rates not more than $12,500 per annum for full-time referces, and not more than $6,000 per annum for part-time referees. In fixing the amount of salary to be paid to a referec, consideration shall be given to the average number and the types of, and the average amount of gross assets realized from, cases closed and pending in the territory which the referee is to serve, during the last preceding period of ten years, and to such other factors as may be material. Disbursement of such salaries shall be made monthly by or pursuant to the order of the Director."

STATEMENT

The purpose of the proposed legislation, as amended, is to increase the limit of salaries of full-time referees from $10,000 per annum to