Bankruptcy Court Jurisdiction
Federal bankruptcy jurisdiction is provided by 28 U.S.C. § 1334 which provides that "district courts shall have original and exclusive jurisdiction of all cases under title 11" and that "district court shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases until title 11."
28 U.S.C. § 157(a) provides for the referral to bankruptcy judges of "any or all cases under title 11 and any or all proceedings arising under title 11 or arising in or related to a case under title 11."
Accordingly, the courts hold that federal bankruptcy jurisdiction extends to four categories of title 11 matters: 1. cases under title 11, 2. proceedings arising under title 11, 3. proceedings arising in a case under title 11, and 4. proceedings related to a case under title 11. "Core" proceedings include cases under title 11, proceedings arising under title 11, and proceedings arising in a case under title 11. The courts hold that a proceeding is "core" "if it invokes a substantive right provided by title 11 or if it is a proceeding that by its nature could arise only in the context of a bankruptcy case."
Bankruptcy courts may hear and enter final judgments as to "core" proceedings, but although they may hear "non-core" proceedings, bankruptcy courts "must submit proposed findings of fact and conclusions of law to the district court subject to de novo review."
According to the court in Republic Underwriters Insurance Company vs. DBSI Republic, LLC, et al., (In re DBSI et al.) Adv. Proc. No. 09-51041 (District of Delaware 2009), courts "use various tests and standards" to determine whether a proceeding is a "core" proceeding. The court may first look to determine if a proceedings "fits into one of the categories of 'core' proceedings outlined in 28 U.S.C. § 157(b)(2)." If it does not fit into one of these categories, "the court should determine whether the proceeding invokes a substantive right provided by title 11 or whether the proceeding could only arise in the context of a bankruptcy case."
28 U.S.C. § 157(a) provides for the referral to bankruptcy judges of "any or all cases under title 11 and any or all proceedings arising under title 11 or arising in or related to a case under title 11."
Accordingly, the courts hold that federal bankruptcy jurisdiction extends to four categories of title 11 matters: 1. cases under title 11, 2. proceedings arising under title 11, 3. proceedings arising in a case under title 11, and 4. proceedings related to a case under title 11. "Core" proceedings include cases under title 11, proceedings arising under title 11, and proceedings arising in a case under title 11. The courts hold that a proceeding is "core" "if it invokes a substantive right provided by title 11 or if it is a proceeding that by its nature could arise only in the context of a bankruptcy case."
Bankruptcy courts may hear and enter final judgments as to "core" proceedings, but although they may hear "non-core" proceedings, bankruptcy courts "must submit proposed findings of fact and conclusions of law to the district court subject to de novo review."
According to the court in Republic Underwriters Insurance Company vs. DBSI Republic, LLC, et al., (In re DBSI et al.) Adv. Proc. No. 09-51041 (District of Delaware 2009), courts "use various tests and standards" to determine whether a proceeding is a "core" proceeding. The court may first look to determine if a proceedings "fits into one of the categories of 'core' proceedings outlined in 28 U.S.C. § 157(b)(2)." If it does not fit into one of these categories, "the court should determine whether the proceeding invokes a substantive right provided by title 11 or whether the proceeding could only arise in the context of a bankruptcy case."