An Act to amend sections 64a, 238, 378, and 483 of the Bankruptcy Act and to repeal sections 354 and 459 of the act
PL 90-157 (H.R.2517), enacted 11/28/1967

81 STAT.] 
PUBLIC LAW 90-157-NOV. 28, 1967 
511 
Public Law 90-157 
AN A C T 
November 28, 1967 
T(» amend sections 04a, 238, 378, and 483 of the Bankrniitcy Act and to rei)eal 
[H. R. 2517] 
sections 354 and 4
.
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}
) of the Act. 
Be It enaxted hy the Senate and IIou.se of Repr'-senfatives of the 
United States of America in Congress assembled, Tliat section 64a of 
Bankruptcy. 
the Bankruptcy Act (11 U.S.C. 104(a)) is amended to read as follows: 
52 stat. 874; 
"SEC. 64. DEBTS WHICH HAVE PKIORITY.—a. The debts to liave pri- 'VrSitfof'^'" 
ority, in advance of the payment of dividends to creditors, and to be debts. 
paid in full out of bankrupt estates, and the order of payment, shall 
be (1) the costs and expenses of administration, includin^^ the actual 
Expenses and 
and necessary costs and expenses of preserving the estate subsequent traTion^. ^'^"''"*^' 
to filing the petition; the fees for the referees' salary and expense 
fund; the filing fees paid by creditors in involuntary cases or by 
persons other than the bankrupts in voluntary cases; wliere prop-
erty of the bankrupt, transferred or concealed by him either before 
or after the filing of the petition, is recovered for the benefit of the 
estate of the bankrupt by the efforts and at the cost and expense of 
one or more creditors, the reasonable costs and expenses of such 
recovery; the trustee's expenses in opposing the bankrupt's discharge 
or in connection with the criminal prosecution of an offense pvmishable 
under chapter 9 of title 18 of the United States Code, or an offense 
^s USI^'IM^ISS 
concerning the business or property of the l)ankru})t punishable under 
other laws, P'ederal or State; the fees and mileage payable to witnesses 
as now or hereafter provided by the laws of the United States, and 
one reasonable attorney's fee, for the professional services actually 
rendered, irrespective of the number of attorneys employed, to the 
bankrupt in voluntary and involuntary cases, and to the i)etitioning 
creditors in involuntary cases, and if the court adjudges the debtor 
bankrupt over the debtor's objection or pursuant to a voluntary petition 
filed by the debtor during the pendency of an involuntary proceeding, 
for the reasonable costs and expenses incurred, or the reasonable dis-
bursements made, by them, including but not limited to compensation 
of accountants and appraisers emj)loyed by them, in such amount as 
fhe court may allow. Where an order is entered in a proceeding 
under any chapter of this Act directing that bankruptcy be proceeded 
vrith, the costs and expenses of administration incurred in the ensuing 
bankruptcy proceeding, including expenses necessarily incurred by a 
debtor m possession, receiver, or trustee in preparing the schedule 
and statement required to be filed by section 288, 378, or 483, shall cf^^'J"^' ^^^' 
liave priority in advance of payment of tlie unpaid costs and expenses 
of administration, including the allowances provided for in such chap-
ter, incurred in the superseded proceeding and in the suspended bank-
ruptcy jjroceeding, if any; (2) wages and commissions, not to exceed 
wages and com-
$600 to each claimant, which have been earned within three months 
l)efore the date of the commencement of the proceeding, due to work-
men, servants, clerks, or traveling, or city salesmen on salary or com-
mission basis, whole or part time, whether or not selling exclusively 
for the bankrupt; and for the purposes of this clause, the term 
'traveling or city salesman' shall include all such salesmen, whether 
"Traveling or 
or not they are independent contractors selling the products or services '^'^ ^ ^^ esman. 
of the bankrupt on a commission basis, with or without a drawing 
account or fdrmal contract; (3) where the confirmation of an arrange- 
certain credi-
ment or Mage earner plan or the bankrupt's discharge has been ^
"
"
"
^ costs. 
refused, revoked, or set aside upon the objection and through the efforts 
and at the cost and expense of one or more creditors, or, where through 
the efforts and at the cost and expense of one or more creditors, evi-
dence shall have been adduced resulting in the conviction of any 
85-622 0-68—35 
512 
PUBLIC LAW 90-157-NOV. 28, 1967 
81 STAT. 
62 Stat. 689. 
18 use 151-155. 
Taxes. 
Other debts. 
80 Stat. 268. 
U use 107. 
Superseding 
bankruptcy pro-
ceeding. 
52 Stat. 899. 
52 Stat. 885. 
11 use 527. 
11 use 528. 
Trustee. 
52 Stat. 860. 
11 u s e 72. 
Filing of sepa-
rate debt sched-
tile. 
Tax claims. 
11 u s e 103. 
11 use 527. 
person of an offense under chapter 9 of title 18 of the United States 
Code, the reasonable costs and expenses of such creditors in obtaining 
such refusal, revocation, or setting aside, or in adducing such evidence; 
(4) taxes which became legally due and owing by the bankrupt to the 
United States or to any State or any subdivision thereof which are 
not released by a discharge in bankruptcy: Provided^ however^ That 
no priority over general unsecured claims shall pertain to taxes not 
included in the foregoing priority: And provided further^ That no 
order shall be made for the payment of a tax assessed against any 
property of the bankrupt in excess of the value of the interest of the 
bankrupt estate therein as determined by the court; and (5) debts 
other than for taxes owing to any person, mcluding the United States, 
who by the laws of the United States is entitled to priority, and rent 
owing to a landlord who is entitled to priority by applicable State 
law or who is entitled to priority by paragraph (2) of subdivision c 
of section 67 of this Act: Provided^ however^ That such priority for 
rent to a landlord shall be restricted to the rent which is legally due 
and owing for the actual use and occupancy of the premises affected, 
and which accrued within three months before the date of bankruptcy." 
SEC. 2. Section 238 of the Bankruptcy Act (11 U.S.C. 638) is 
amended to read as follows: 
"SEC. 238. a. Upon the entry of an order directing that bankruptcy 
be proceeded with— 
•'(1) wliere the petition was filed under section 127 of this Act, 
the bankruptcy proceeding shall be deemed reinstated and shall 
thereafter be conducted, so far as possible, as if the petition under 
this chapter had not been filed; or where the petition was filed 
under section 128 of this Act, the proceeding shall thereafter be 
conducted so far as possible, in the same manner and with like 
effect as if an involuntary petition for adjudication had been 
filed at the time when the petition under this chapter was filed, 
and a decree of adjudication had been entered at the time when 
the petition under this chapter was approved; 
"(2) a trustee sliall be elected or appointed pursuant to sec-
tion 44 of this Act and shall supersede any trustee previously 
appointed; 
"(3) a separate schedule listing unpaid obligations incurred 
after the filing of the petition under this chapter, including the 
amounts owing, the creditors' names, and their addresses or places 
of business, and a statement of all contracts, executory in whole 
or in part, assumed or entered into after the filing of the petition, 
sliall be filed with the court within thirty days after the entry of 
such order or within such further time as the court may allow; 
such schedule and statement shall be filed by the debtor for any 
obligations incurred and contracts assumed or entered into by it 
while continued in possession and before the qualification of a 
receiver or trustee, it" any, under this chapter, and if a receiver or 
trustee has qualified, the schedule and statement shall be filed 
by such receiver or trustee for any obligations incurred and con-
tracts assumed or entered into by him; and 
"(4) except as otherwise provided in this section, only claims 
for taxes due the United States or any State or any subdivision 
thereof at the time of filing of the original petition under this 
Act and such claims as are provable under section 63 of this Act 
shall be allowed; and, as to any such claims not already duly filed, 
where the petition was filed under section 127 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 bank-
81 STAT.] 
PUBLIC LAW 90-157-NOV. 28, 1967 
513 
ruptcy be proceeded with sluill, 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; but 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, 
"b. Any contract which is entered into or assumed by a debtor in 
possession, receiver, or trustee in a proceeding under this chapter and 
which is executory in whole or in part at the time of the entry of an 
order directing that bankruptcy be proceeded with shall be deemed 
to be rejected unless expressly assumed within sixty days after the 
entry of such order or the qualification of the trustee in bankruptcy, 
whichever is the later, but the court may for cause shown extend or 
reduce the time. When a contract entered into or assumed in a super-
seded proceeding is rejected, the resulting liability shall constitute a 
cost of administration of the superseded proceeding. 
"c. Upon the filing of the schedule and statement required by sub-
division a of this section, the court shall make an order directing the 
claims against the debtor in possession, receiver, or trustee, including 
all claims of the United States, any State, or any subdivision thereof, 
to be filed, and the holders of such claims to be notified to file their 
claims within sixty days from the date of the order. The court shall 
designate the fonn and manner in which the notice shall be given. Not-
withstanding the foregoing, claims not duly scheduled as provided in 
subdivision a of this section and claims arising from rejection of 
executory contracts under subdivision b of this section may be filed 
within such further time as the court may direct. Except as otherwise 
provided in this section, claims against the debtor in possession, 
receiver, or trustee shall be proved and filed in the manner provided 
in section 57 of this Act. 
"d. Claims directed to be filed under subdivision c of this section 
but not filed within the time therein provided shall not be allowed 
and shall be barred, and the debtor in possession, receiver, or trustee 
shall be forever discharged from any liabilit}'^ with respect to such 
claims. When all claims which have been duly allowed have been paid 
in full, claims directed to be filed but not filed within the time pre-
scribed pursuant to subdivision c and claims not allowable under 
paragraph (4) of subdivision a of this section because not filed within 
the time prescribed therein may nevertheless be filed within such time 
as the court may fix or for cause shown extend and, if duly proved, 
shall be allowed against any surplus remaining in such case." 
SEC. 3. Section 378 of the Bankruptcy Act (11 U.S.C. 778) is amended 
to read as follows: 
"SEC. 378. a. Upon the entry of an order directing that bankruptcy 
be proceeded with— 
"(1) in the case of a petition filed under section 321 of this Act, 
the bankruptcy proceeding shall be deemed reinstated and there-
after shall be conducted, so far as possible, as if such petition 
under this chapter had not been filed; 
"(2) in the case of a petition filed under section 322 of this Act, 
the proceeding shall be conducted, so far as possible, in the same 
manner and with like effect as if a voluntary petition for adjudica-
tion in bankruptcy had been filed and a decree of adjudication had 
been entered on the day when the petition under this chapter was 
filed; and the trustee nominated by creditors under this chapter 
shall be appointed by the court, or, if not so nominated or if the 
trustee so nominated fails to qualify within five days after notice 
to him of the entry of such order, a trustee shall be appointed by 
the court; 
66 Stat. 424. 
U u s e 93. 
Executory con-
tracts, rejection. 
Filing of 
claims. 
52 Stat. 866. 
U use 93. 
Superseding 
bankruptcy pro-
ceeding. 
52 Stat. 913. 
11 u s e 721. 
11 use 722. 
514 
PUBLIC LAW 90-157-NOV. 28, 1967 
[81 STAT. 
Filing of sepa-
rate debt schedule. 
Tax claims. 
5 2 Stat. 
11 use 
873. 
103. 
11 u s e 721. 
66 Stat. 424. 
11 use 93. 
Executory con-
tracts, rejection. 
Filing of claims 
52 Stat. 866. 
11 u s e 93. 
"(3) a separate schedule listing unpaid obiio-ations incurred 
after the filing of the petition under this chapter, including the 
amounts owing, the creditors' names, and their addresses or places 
of business, and a statement of all contracts, executory in whole or 
in part, assumed or entered into after the filing of the petition, 
shall be filed with the court within thirty days after the entry of 
such order or within sucli further time as the court may allow; 
such schedule and statement shall be filed by the debtor for any 
dbligations incurred and contracts assumed or entered into by him 
while continued in possession and before the qualification of a 
receiver, if any, under this Act, and if a receiver has qualified or a 
trustee has been continued in possession, the schedule and state-
ment shall be filed by such receiver or trustee for any obligations 
incurred and contracts assumed or entered into by him; and 
"(4) except as otherwise provided in this section, only claims 
for taxes due 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, as to any such claims not already duly filed, 
where the petition was filed under section 321 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 bank-
ruptcy 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; but 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 pre-
scribed or as permitted by subdivision n of section 57 of this Act 
. shall not be allowed in the reinstated bankruptcy proceeding, 
"b. Any contract wiiich is entered into or assumed by a debtor in 
possession, receiver, or trustee in a proceeding under this chapter and 
which is executory in whole or in part at the time of the entry of an 
order directing that bankruptcy be proceeded with shall be deemed 
to be rejected unless expressly assumed within sixty days after the 
entry of such order or the qualification of the trustee in bankruptcy, 
whichever is the lat^r, but the court may for cause shown extend or 
reduce the time. When a contract entered into or assumed in a super-
seded proceeding is rejected, the resulting liability shall constitute a 
cost of administration of the superseded proceeding. 
"c. Upon the filing of the schedule and statement required by sub-
division a of this section, the court shall make an order directing the 
claims against the debtor in possession, receiver, or trustee, including 
all claims of the United States, any State, or any subdivision thereof, 
to be filed, and the holders of such claims to be notified to file their 
claims within sixty days from the date of the order. The court shall 
designate the form and manner in which the notice shall be given. 
Notwithstanding the foregoing, claims not duly scheduled as provided 
in subdivision a of this section and claims arising from rejection of 
executory contracts under subdivision b of this section may be filed 
within such further time as the court may direct. Except as otherwise 
provided in this section, claims against the debtor in possession, 
receiver, or trustee shall be proved and filed in the manner provided 
in section 57 of this Act. 
"d. Claims directed to be filed under subdivision c of this section but 
not filed within the time therein provided shall not be allowed and 
shall be barred, and the debtor in possession, receiver, or trustee shall 
be forever discharged from any liability with respect to such claims. 
When all claims which have been duly allowed have been paid in full, 
81 STAT.] 
PUBLIC LAW 90-157-NOV. 28, 1967 
515 
claims directed to be filed but not filed witliin the time prescribed piir-
siiiint to subdivision c and claims not allowable under paragraph (4) 
of subdivision a of this section because not filed within the time pre-
scribed therein may nevertheless be filed within such time as the coui-t 
may fix or for cause shown extend and, if duly proved, shall be allowed 
against any surplus remaining in such case.'* 
SEC. 4. Section 483 of the Bankruptcy Act (11 U.S.C. 883) is 
amended to read as follows: 
"SEC. 483, a. Upon the entry of an order directing that bankruptcy 
be proceeded with— 
" (1) in the case of a petition filed under section 421 of this Act, 
the bankruptcy proceeding shall be deemed reinstated and there-
after shall be conducted, so far as possible, as if such petition 
under this chapter had not been filed; 
"(2) in the case of a petition filed under section 422 of this Act, 
the proceeding shall thereafter be conducted, so far as possible, 
in the same manner and wath like effect as if a voluntary petition 
for adjudication had been filed and a decree of adjudication had 
been entered on the day when such original petition under this 
chapter was filed; 
"(3) a separate schedule listing unpaid obligations incurred 
after the filing of the petition under this chapter, including the Jie 
amounts owing, the creditors' names, and their addresses or places 
of business, and a statement of all contracts, executory in whole 
or in part, assumed or entered into after the filing of the petition, 
shall be filed with the court within thirty days after the entry of 
such order or within such further time as the court may allow: 
such schedule and statement shall be filed by the debtor for any 
obligations incurred and contracts assumed or entered into by 
him while continued in possession and before the qualification of 
a trustee, if any, under this chapter, and if a trustee has qualified, 
the schedule and statement shall be filed by such trustee for any 
obligations incurred and contracts assumed or entered into by 
him; and 
"(4) except as otherwise provided in this section, only claims 
for taxes due 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 claims not already filed may be filed in 
accordance with the provisions of subdivision n of section 57 of 
this Act. 
"b. Any contract which is entered into or assumed by a debtor in 
possession or trustee in a proceeding under this chapter and wliich is 
executory in whole or in part at the time of the entry of an order 
directing that bankruptcy be proceeded with shall be deemed to be 
rejected unless expressly assumed within sixty days after the entry of 
such order or the qualification of the trustee in bankruptcy, whiche\er 
is the later, but the court may for cause shown extend or reduce the 
time. When a contract entered into or assumed in a su})erseded j)ro-
ceeding is rejected, the resulting liability shall constitute a cost of 
administration of the superseded proceeding. 
"c. Upon the filing of the schedule and statement required by sub-
division a of this section, the court shall make an order directing the 
claims against the debtor in possession or trustee, including all claims 
of the United States, any State, or any subdivision thereof, to be filed, 
and the holders of such claims to be notified to file their claims within 
sixty days from the date of the order. The court shall designate the 
form and manner in which the notice shall l)e given. Notwithstanding 
the foregoing, claims not duly scheduled as provided in subdivision a 
Superseding 
bankruptcy pro-
ceeding. 
52 Stat. 925. 
11 u s e 821. 
11 u s e 822. 
Filing of sjepa-
rate debt sched-
Tax claims. 
52 Stat. 873. 
11 u s e 103. 
66 Stat. 424. 
11 u s e 93. 
Executory con-
tracts, rejection. 
Filing of 
claims. 
516 
PUBLIC LAW 90-158-NOV. 28, 1%7 
[81 STAT. 
52 Stat. 866. 
11 u s e 93. 
Repeals. 
52 Stat. 910; 
66 Stat. 434. 
of this section and claims arising from rejection of execntory contracts 
under subdivision b of this section may be filed Avithin such further 
time as the court may direct. Except as otherwise provided in this 
section, claims against the debtor in possession or trustee shall be 
proved and filed in the manner provided in section 57 of this Act. 
"d. Claims directed to be filed under subdivision c of this section 
but not filed within the time therein provided shall not be allowed and 
shall be barred, and the debtor in possession or trustee shall be forever 
discharged from any liability with respect to such claims. When all 
claims which have been duly allowed have been paid in full, claims 
directed to be filed but not tiled within the time prescribed pursuant 
to subdivision c and claims not allowable under paragraph (4) of sub-
division a of this section because not filed within the time prescribed 
therein may nevei'theless be filed within such time as the court may fix 
or for cause shown extend and, if duly proved, shall be allowed against 
any surplus remaining in such case." 
SEC. 5. Sections 354 and 459 of the Bankruptcy Act (11 U.S.C. 754 
and 859) are hereby repealed. 
Approved November 28, 1967. 
Public Law 90-158 
November 28, 1967 
AN A C T 
[H. R. 2518] 
rp^ amend sections 837 and 338 of the Bankruptcy Act and to add new section 339. 
Bankruptcy. 
5 2 Stat. 908; 
72 Stat. 821. 
Disbursing 
agents, designa-
tion. 
Creditors' com-
mittee, election. 
66 Stat. 432. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assenwled^ That section 337 of 
the Bankruptcy Act, as amended (11 U.S.C. 737), is amended to read 
as follows: 
"SEC. 337. At such meeting, or at any adjournment thereof, the 
judge or referee shall, after the acceptance of the arrangement— 
" (1) designate the receiver or trustee, if any, or the debtor or 
a person specially appointed as disbursing agent to distribute, 
subject to the control of the court, the consideration, if any, to be 
deposited by the debtor; and, if a disbursing agent is so appointed, 
require such person to give bond with a surety to be approved by 
the court in such amount as the court shall fix, and fix the amount 
or rate of his compensation, not in excess of the compensation 
allowable to a receiver serving as a mere custodian under this Act; 
" (2) fix a time within which the debtor shall deposit, in such 
place as shall be designated by and subject to the order of the 
the court, the consideration, if any, to be distributed to the credi-
tors, the money necessary to pay all debts which have priority, 
unless such priority creditors shall have waived their claims on 
such deposit, or consented in writing to any provision of the 
arrangement for otherwise dealing with such claims, and the 
money necessary to pay the costs and expenses of the proceeding; 
and 
"(3) fix a time for the filing of the application to confirm the 
arrangement and for a hearing on the confirmation thereof or any 
objections to the confirmation, unless such times have already 
been named in the notice of the meeting or unless all creditors 
affected by the arrangement have accepted it." 
SEC. 2. Section 338 of the Bankruptcy Act, as amended (11 U.S.C. 
738), is amended to read as follows: