In 1938 Congress enacted the Chandler Bill, which became effective September 22, 1938. Its purpose, among other things, as explained by the House Judiciary Committee report, was to clarify certain of the definitions and to add desirable new definitions, to straighten out certain overlapping provisions, to increase efficiency in administration, to make clearer certain ambiguous provisions, to improve the procedural sections of the act, and in general to modernize and bring up to date the bankruptcy law of our country. Congress went somewhat further than a mere modernization of the existing statute. It expanded the law by adding chapters on "Arrangements", which liberalize plans of debtors for settlement, satisfaction or extension of debts; on "Real Property Arrangements by Persons Other Than Corporations" which permit alteration or modification of debts secured by real property or chattels real; on "Wage Earners Plans" which enable individuals who work for wages or salary to compose or have extended the time for the payment of their debts; and on "Maritime Commission Liens" which facilitate the continued operation of established steamship lines facing financial difficulties.
Leopold M. Stern,
State Bar Journal,
Liquidation Under the Chandler Act: Bankruptcy Practice and Procedure Is Changed by Act of Congress Effective September 22, 1938,
13 Wash. L. Rev. & St. B.J.
Available at: https://digitalcommons.law.uw.edu/wlr/vol13/iss4/9