Bankruptcy Act of 1938
Encyclopedia
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.
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
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.