In Re Setzler

These proceedings were instituted by an involuntary petition in bankruptcy filed in 1943. An order of general reference was made at that time. The alleged bankrupt answered the involuntary petition, and thereafter petitioned for proceedings under Chapter XI, 11 U.S.C.A. § 701 et seq. The Chapter XI petition was approved and likewise referred to the referee.

A plan of arrangement was proposed by the debtor and, following acceptance by creditors, the referee entered an order on August 30, 1944 confirming the plan.

The plan provided that the debtor would pay $500 to a receiver forthwith, and a like sum each month commencing sixty days after approval of the plan and continuing until all unsecured debts aggregating some $50,000 were paid to the extent of one-half or more, according to class, as stipulated in the arrangement. The plan further provided that the bankruptcy court retain jurisdiction until the arrangement was fully performed.

On September 21, 1945, the referee found that the debtor was in default under the plan to the extent of payments aggregating $4,500 and entered an order directing the debtor to pay that amount to the receiver. However, no payments were made. On…