Pfister & Saso, LLP

Bankruptcy Act of 1898

September 1978 amendment of the Bankruptcy Act of 1898 (Pub. L. 95-383)


Act of Sept. 22, 1978, Pub. L. 95-383, 92 Stat. 729

An Act To amend the Bankruptcy Act to provide for uniform supervision and control of employees of referees in bankruptcy

Ninety-Fifth Congress, Session II · Approved September 22, 1978

Rewrites section 62a(2) and (3) on the office expenses and staff of referees in bankruptcy. The Director of the Administrative Office authorizes referees’ expenses and the employment of clerical and other assistants, but all such employees work under the direct supervision of the referee, who alone may employ, direct and remove them; the referees’ salary and expense funds may pay only the salaries of assistants so employed (and of the Bankruptcy Division of the Administrative Office), and a vacancy in the office of referee does not end the assistants’ employment. The last amendment of the 1898 Act before its repeal by the Bankruptcy Reform Act of 1978.

This is an unofficial transcription, prepared by Robert J. Pfister for ease of reading and copying. The authoritative text is the United States Statutes at Large.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraphs (2) and (3) of subdivision a of section 62 of the Bankruptcy Act (11 U.S.C. 102(a)(2) and (3)) are amended to read as follows:

“(2) The actual and necessary office and other expenses of referees shall be authorized and approved by the Director, including compensation of clerical, stenographic, and other assistants of referees at rates fixed by the Director, at rates not less than the rates for comparable services prevailing in the respective offices of the clerks of the several district courts, and the costs of establishing and maintaining their offices with equipment and supplies, adequate for their efficient and economical operation, including mechanical equipment and devices and law libraries. Such expenses may be allowed when authorized by a judge of the judicial district or districts in which a referee serves in cases of emergency where it is not feasible to secure prior authorization of the Director.

“(3) When, in the opinion of the Director, the public interest requires it, he may, on the recommendation of a referee, which recommendation shall state facts showing the necessity for the same, allow the referee to employ necessary clerical, stenographic, and other assistants. All employees of the referee shall be utilized under the direct supervision of the referee exclusively in the processing of bankruptcy cases. The referee may at his pleasure remove any assistant in his employ. The authority of the referee to employ, direct, and remove assistants may not be exercised by anyone other than the referee. The Director may utilize funds collected or appropriated for the referees’ salary fund and the referees’ expense fund pursuant to section 40c of this Act, to pay the salaries of only such clerical, stenographic, or other assistants as are employed under the direct supervision of the referee in the office of the referee: Provided, however, That salaries of the employees of the Bankruptcy Division of the Administrative Office of the United States Courts may also be paid out of such funds. If the office of the referee shall become vacant, the employment of his assistants shall not thereupon be terminated: Provided, however, That during such vacancy the Director may terminate the employment of any assistant, if, in his opinion, the services of such assistant are no longer needed.”.

Approved September 22, 1978.