The Waterbury Democrat., 1938-09-28
NEW DEAL FOR
 CREDITORS LOOMS
Revised National Bank ruptcy Statute May Be
 Responsible
Especial to The Democrat)


 Hartford, Sept. 27-A new deal for creditors will result from the oper- ations of the revised national bank ruptcy statute, known as the Chand- Ter Act, 1t was emphasized by Brace Bennitt, Membership and Promotion director of the National Association of Credit Men, in his talk before the dinner meeting of the Hartford Association of Credit Men here to- night ct the University club.
 The law became effective Thurs day, September %, and represents the only complete revision of the bankruptcy statute since It's origin al enactment in 1898.
 Although 1t does not change the previous system in any of It's fun- damentals," MT. Bennitt declared, "the new law has immense value to creditor firms.
 Debtor Relief
 "The debtor-relief provisions of the Chandler Act allow these credi- tor firms to perpetuate deserving outlets through reorganization or ar- rangement procedure. Thus com- panies will be able to keep open a worthy outlet for merchandise and at the same time save the debtors means of livelihood.
 By enlarging the information available to creditors, by providing for examination of the bankrupt, by speeding up bankruptcy procedure, by specifying the size and function of creditors committees. by improv- ing the discharge procedure and the criminal provisions, to mention a few points, the new law marks 0 great step forward.
 Turning to the background of the Chandler act and the cooperation of the National Association of Credit Men as Q member of the national bankruptcy conference in support ing the act. MT. Bennitt pointed out that lin the i've year period of preparation, all groups interested in bankruptcy administration or pro- ccedure were consulted.
 "The passage of the Chandler act is c concrete example of careful and thorough preparation and of conn plete cooperation with our legisla- tors. Governmental authorities have publicly pointed to this legislation as model for any governmental and business cooperation in legisla- tion.
 Rights safeguarded
 "What the new Bankruptcy act means to business will be largely governed by the proper use busi- ness makes of this new law and the attention 1t gives to its responsibili- ties hereunder. Both creditor and debtor lights are clearly set forth, and safe-guarded and are made equitable.
 "The so-called 'debtor-relief' sec- tions of the new act cover, in sep arate chapters, corporate reorgani- zation. arrangements, real property arrangements and wage earner plans. Under these sections the term debtor is retained to differ entiate from bankrupt The status of bankrupt does not pertain to debtor by virtue of coming under these proceedings unless bankruptcy results from failure to arrive at Q encouragement of his affairs.
 Reorganizations Changed
 "The most radical changes under these provisions have to do with re- organiza ton, known under the old act as 77-B and now as chapter X. These changes are directed against the abuses that were practiced un- der section 77-B.
 Previously, it was possible to take steps in contemplation of cor- porate recTganizat.on.-'setting the stage 80 to speak. This is guaycGd against :n the new act by definite: provision defining disinterested par ties who, in general, are the only ones now to serve in an official or interested capacity.
 ''The ability of corporations of any size or nature to avail themselves of 77-B is now eliminated by permit ting small. closely-held corporations with unsecured debts only to re- arrange their affairs under the arrangement section of chapter xI.
 Creditor Committees
 Throughout the act the greater interest of business, particularly general creditors, is advanced by the new provision definitely specify ing a creditors committee of not less than three elected by the cred- itors, which shell advise and con- suit with the trustee, receiver CT court on oil pertinent matters.
 ''The arrangement section of the new act is 6 composite of the old sections i2 and 7t on compositions. containing their desirable features, but clarifying, strengthening and