Bankruptcy-Prior Discharge Within Six Years as Bar to Wage Earner’s Extension Plan

Appellant, a debtor, sought confirmation of a wage earners’ extension plan pursuant to Chapter XIII of the Bankruptcy Act. Section 656 prohibits confirmation of a plan under Chapter XIII if the debtor would have been denied an ordinary discharge in bankruptcy had he been seeking one. A discharge within six years prior to the date of filing constitutes a bar to such discharge. The referee, finding that the debtor had obtained a discharge within six years, dismissed the proceedings. On appeal from the district court’s affirmance, held, affirmed. Since a wage earner’s extension plan clearly contemplates a discharge of debts, confirmation is barred under sections 656a and 14c(5) by a prior discharge within six years. In re Schlageter, 319 F.2d 821 (3d Cir. 1963).