50, 87 (1982) (invalidating bankruptcy courts' grant of general jurisdiction under the Bankruptcy Act of 1978
While the Bankruptcy Act of 1978 permitted some preferential treatment with respect to farmers, its drafters failed to anticipate the economic circumstances of the 1980s.
(88) The Chapter 12 requirements for eligibility as an individual included a percentage test, similar to the definition of "farmer" provided in the Bankruptcy Act of 1978. (89) However, the new requirements put a greater emphasis on percentage of debt, rather than percentage of income, and provided that as of the date of filing, individuals must have at least eighty percent of their debts arising out of a farming operation.
(383.) Geraldine Mund, Appointed or Anointed: Judges, Congress, and the Passage of the Bankruptcy Act of 1978
, Part Five: Inside the White House, 82 AM.
As created under the Bankruptcy Act of 1978 and left undisturbed by the U.S.
Solidifying this conclusion, the Supreme Court unambiguously stated, "[t]he judicial power of the United States must be exercised by courts having the attributes prescribed in Article III." (29) "It is undisputed that the bankruptcy judges whose offices were created by the Bankruptcy Act of 1978 do not enjoy the protections constitutionally afforded to Article III judges." (30) "[T]here is no doubt that the bankruptcy judges created by the Act are not Article III judges." (31) Besides owing its allegiance to the district court, for it is from the district court that the bankruptcy court derives its authority to operate, (32) the bankruptcy court is clearly not the equal of the district court, but rather, is an inferior court.
Case was decided in 1939, well before Congress passed the Bankruptcy Act of 1978. The Act did not mention the new value exception.
Unfortunately, Ahlers also introduced uncertainty into bankruptcy law when it left open the question of whether the new value exception survived the Bankruptcy Act of 1978.(79) The Court seemed to agree that the new value exception did not survive the Act when it called the exception debatable.(80)
(263) A few years later, Congress codified the sentiment expressed in Nicholas during the passage of the Bankruptcy Act of 1978. (264) Subsequently, in United States v.
(294) Even if there was no support in BAPCPA or Chapter 12's legislative history for the contention that post-petition taxes are administrative expenses, the legislative history from the Bankruptcy Act of 1978 evidenced intent to codify the common law treatment of post-petition taxes as administrative expenses.
Rodino, who was the Chair of the House Judiciary Committee, submitted responses that led to the conclusion that "only judges appointed under Article III could fully exercise the pervasive jurisdiction that Congress wanted to grant them." The Honorable Geraldine Mund, Appointed or Anointed: Judges, Congress, and the Passage of the Bankruptcy Act of 1978 Part One: Outside Looking In, 81 Am.
See Langley, supra note 173 at 448-51 (2013); see also Geraldine Mund, Appointed or Anointed: Judges, Congress, and the Passage of the Bankruptcy Act of 1978, Part Three: On the Hill, 81 Am.