sions which may be confirmed under section 74 on and after such effective date, except that the exemption provided by section 520 of this Act may be disallowed if it shall be made to appear that such composition or extension, or composition and extension, had for one of its principal purposes the avoidance of income taxes, and except further that where such composition or extension, or composition and extension, has not been confirmed on or after such effective date, section 521 of this Act shall apply where prac ticable and expedient.

Chapter XIII

WAGE EARNERS' PLANS

This chapter, added by the Chandler Act (1938), constitutes similarly to Chapter XII the first bankruptcy legislation on its specific subject. It represents a special development of the principles of composition of former sections 12 and 74.

For a table of cross references to corresponding sections of chapters X-XII, see p. 225, ante.

Article I-Construction

Sec. 601. (11 U.S.C.A. § 1001.) Exclusive Application of

Chapter

The provisions of this chapter shall apply exclusively to proceedings under this chapter.

Sec. 602. (11 U.S.C. § 1002.) Application of Other Provisions

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 chapter, apply in proceedings under this chapter: Provided, however, That subsection f of section 70 shall not apply in such proceedings unless an order shall be entered directing that bankruptcy be proceeded with pursuant to the provisions of chapters I to VII, inclusive. For the purposes of such application, provisions relating to "bankrupts" shall be deemed to relate also to "debtors," and "bankruptcy proceedings" or "proceedings in bankruptcy" shall be deemed to include proceedings under this chapter. For the purposes of such application the date of the filing of the petition in bankruptcy shall be taken to be the date of the filing of an original petition under section 622 of this Act, and the date of adjudication shall be taken to be the date of the filing of the petition under section 621 or 622 of this Act except where an adjudication had previously been entered.

Article II-Definitions

Sec. 606. (11 U.S.C. § 1006.) In General

For the purposes of this chapter, unless inconsistent with the

context

(1) "claims" shall include all claims of whatever character against the debtor or his property, whether or not provable as debts under section 63 of this Act and whether secured or un

secured, liquidated or unliquidated, fixed or contingent, but shall not include claims secured by estates in real property or chattels real;

(2) "creditor" shall mean the holder of any claim;

(3) "debtor" shall mean a wage earner who filed a petition under this chapter;

(4) "debts" shall include all claims;

(5) "executory contracts" shall include unexpired leases of real property;

(6) "petition" shall mean a petition filed under this chapter by a wage earner desiring to effect a plan for a composition or extension of time for the payment of his debts, or both;

(7) "plan" shall mean a plan for a composition or extension, or both, proposed in a proceeding under this chapter; and

(8) "wage earner" shall mean an individual who works for wages, salary, or hire at a rate of compensation which, when added to all his other income, does not exceed $5000 per year. As amended by Act of December 29, 1950, P.L. 905, 81st Cong., 2d Sess., 64 Stat. 1134, which recognized inflation by setting the limit in (8) at $5,000 per year. The corresponding figure in the Chandler Act (1938) was $3,600. Cf. section 1(32), where the limit is $1500.

(1) excludes claims secured by estates in real property or chattels real, because they are provided for in Chapter XII.

Sec. 607. (11 U.S.C. § 1007.) Creditors Affected by Plan;

Determination

A creditor shall be deemed to be "affected" by a plan only if his interest shall be materially and adversely affected thereby. In the event of controversy, the court shall, after hearing upon notice, summarily determine whether any creditor is so affected.

Article III-Jurisdiction, Powers, and Duties of the Court Sec. 611. (11 U.S.C. § 1011.) Exclusive Jurisdiction of Debtor, Property, and Earnings

Where not inconsistent with the provisions of this chapter, the court in which the petition is filed shall, for the purposes of this chapter, have exclusive jurisdiction of the debtor and his property, wherever located, and of his earnings and wages during the period of consummation of the plan.

Sec. 612.

(11 U.S.C. § 1012.)

Jurisdiction, Powers, and Duties Where not inconsistent with the provisions of this chapter, the jurisdiction, powers, and duties of the court shall be the same—

(1) where a petition is filed under section 621 of this Act and a decree of adjudication has not been entered in the pending

bankruptcy proceeding, as if a decree of adjudication had been entered in such bankruptcy proceeding at the time the petition under this chapter was filed, or

(2) where a petition is filed under section 622 of this Act, as if a voluntary petition for adjudication in bankruptcy had been filed and a decree of adjudication had been entered at the time the petition under this chapter was filed.

Sec. 613.

(11 U.S.C. § 1013.) Same; Administration of Estate Upon the filing of a petition, the court may, in addition to the jurisdiction, powers, and duties hereinabove and elsewhere in this chapter conferred and imposed upon it

(1) permit the rejection of executory contracts of the debtor, upon notice to the parties to such contracts and to such other parties in interest as the court may designate;

(2) extend upon cause shown any time which under this chapter the court is required or permitted to fix for any purpose.

Sec. 614.

(11 U.S.C. § 1014.) Stay of Actions

The court may, in addition to the relief provided by section 11 of this Act and elsewhere under this chapter, enjoin or stay until final decree the commencement or continuation of suits other than suits to enforce liens upon the property of a debtor, and may, upon notice and for cause shown, enjoin or stay until final decree any act or the commencement or continuation of any proceeding to enforce any lien upon the property of a debtor.

Whenever notice is to be given under this chapter, the court shall designate, if not otherwise specified hereunder, the time within which, the persons to whom, and the form and manner in which the notice shall be given. Any notice to be given under this chapter may be combined, whenever feasible, with any other notice or notices under this chapter.

Sec. 616. (11 U.S.C. § 1016.) Appellate Jurisdiction

Where not inconsistent with the provisions of this chapter, the jurisdiction of appellate courts shall be the same as in a bankruptcy proceeding.

Article IV-Petition and Stay

Sec. 621. (11 U.S.C. § 1021.) Filing Petition; Pending Bank

ruptcy Proceeding

A debtor may file a petition under this chapter in a pending bankruptcy proceeding either before or after his adjudication.

Sec. 622. (11 U.S.C. § 1022.) Same; Original Petition

If no bankruptcy proceeding is pending, a debtor may file an original petition under this chapter with the court which would have jurisdiction of a petition for his adjudication.

This adopts by reference the provisions of section 2a(1) concerning venue.

Sec. 623. (11 U.S.C. § 1023.) Contents of Petition

A petition filed under this chapter shall state that the debtor is insolvent or unable to pay his debts as they mature and that he desires to effect a composition or an extension, or both, out of his future earnings or wages.

Sec. 624. (11 U.S.C. § 1024.) Statements and Fees Accompanying Petition

The petition shall be accompanied

(1) by a statement of the executory contracts of the debtor, 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 shall not further be extended except for cause shown and on such notice and to such persons as the court may direct; and

(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.

Amended July 7, 1952, P.L. 456, 82d Cong., 2d Sess., § 47, to conform to the amendment to sections 324 and 424.

The Referees' Salary Act (1946) changed the amount and disposition of the payments to conform to its amendments to sections 40 and 52, and added the proviso.

For schedules and statement of affairs, see forms 1 and 2, pp. 338-354, post.

Sec. 625. (11 U.S.C. § 1025.) Petition in Pending Bankruptcy Proceedings as Stay

A petition filed under section 621 of this Act shall act as a stay of adjudication or of administration of the estate.

Sec. 626. (11 U.S.C. § 1026.) Bond of Debtor; Failure to File The court may, upon hearing after notice to the debtor and such other persons as the court may designate, require the debt