Bankruptcy Act of 1938

Bankruptcy Act of 1938

Other short titles	Bankruptcy Act of 1898 Amendments Bankruptcy Revision of 1938 Chandler Act Chandler Act of 1938
Long title	A bill to amend an act entitled "An Act to establish a uniform system of bankruptcy throughout the United States" approved July 1, 1898, and acts amendatory thereof and supplementary thereto.
Enacted by	the 75th United States Congress
Effective	June 22, 1938
Citations
Public law	75-696
Statutes at Large	52 Stat. 840, 841, 842
Legislative history
Introduced in the House as H.R. 8046 by Walter Chandler (D-TN) Signed into law by President Franklin D. Roosevelt on June 22, 1938

The United States Bankruptcy Act of 1938, known as the Chandler Act, expanded voluntary access to the bankruptcy system and made voluntary petitions more attractive to debtors. The Chandler Act gave authority to the Securities and Exchange Commission in the administration of bankruptcy filings. One effect of the Act was to remove investment banks from control of the corporate reorganization process by eliminating the equity receivership technique. In its place, a trustee was appointed by the bankruptcy court to oversee the reorganization process.^[1]

References

1. Skeel, David A. (2005). Icarus in the boardroom: the fundamental flaws in corporate America and where they came from. Oxford University Press. p. 96.