In the Matter of Edward G. Brissette, Gene Paul Master, Michael Anthony Simon, Bankrupts-Appellants

This appeal presents questions of first impression in the administration of the Bankruptcy Act, concerning the interplay between the exempt property provisions of Section 6 of the Bankruptcy Act ( 11 U.S.C. § 24 (1971)), the wage garnishment restrictions of the Consumer Credit Protection Act ( 15 U.S.C. §§ 1671-77 (1971)), and the wage exemption provisions of the California law applicable to these bankrupts (Cal.Code Civ. Proc. § 690.6 (West Supp.1977)). After disposing of a threshold jurisdictional issue, we conclude that the Consumer Credit Protection Act (“CCPA”) does not itself create an exemption within the meaning of the Bankruptcy Act, but that by reason of its incorporation by California’s exemption statute, which, in turn, is adopted by the Bankruptcy Act, it becomes an exemption measure, with the result that 75 percent of appellants’ wages are exempt from their creditors. In this appeal, each bankrupt requests that 75 percent of his wages earned but unpaid prior to the filing of the bankruptcy petition be deemed exempt property not subject to become part of the bankruptcy estate, pursuant to Section 6 of the Bankruptcy Act. (See Bankruptcy Rule 403; Bankruptcy Act §…