(1. Pay to the debtor direct, or for his benefit as the court may direct, any amount he may be entitled to as exempt by law if he is a householder and head of a family, or, if he is not a householder or head of a family, then such amount for the necessities of life as may be agreed upon by the creditors in the assignment. But nothing in this section shall prevent the trustee from paying to the debtor a greater amount than is exempt by law if agreed to by the creditors and approved by the court.

(2. The trustee shall next pay, according to such funds as he has in his possession, a pro rata share of the balance to all the creditors on an equal basis, or, in such proportions as the creditors may agree.