The Study Of The Bankruptcy Court Jurisdiction In USA

The specialized bankruptcy court in America is the most efficient,independent and professional bankruptcy judicial system.Because of the special social background:the inefficiency of the existing judicial system,the general jurisdiction of the federal district court expanded rapidly after World War II and the increase of the credit industry(credit), and subsequently a large number of insolvent consumers produced, a sharp increase in personal bankruptcy cases and so on,which urged to establish the special bankruptcy court.And the theory and practice of the bankruptcy in the early American bankruptcy law provides the support for the special bankruptcy court.This article has three parts. The first is the historical background of bankruptcy jurisdiction, mainly from the conflict about jurisdiction between the federal courts and state courts, as well as between the district courts and bankruptcy courts; The second part is the limitation of the bankruptcy court jurisdiction.Firstly,give a study of the current judicial system of the bankruptcy court.Make a further study of the constitutional restriction of the bankruptcy court on the basis of the knowledge of current bankruptcy judicial system.Then,combine the constitutional restriction with the existing provisions on the jurisdiction of the bankruptcy to get the correct even exact meaning of these provisions.Finally,we can get the that which clearly fall within the jurisdiction of the bankruptcy court; The third part is how to exclude the bankruptcy court from some bankruptcy cases and how to face the hit from the Stern v.Marshall. I’ll try to analyze the restriction of the bankruptcy court jurisdiction from the opposite side to make the limitation of the bankruptcy court jurisdiction clearly. At the same time, analyzing the latest case the Supreme Court issued in 2011 makes the peripheral boundary more clear,especially about two species of the controversy,this is also the future outlook of the bankruptcy court jurisdiction.The first part focuses on the historical development of bankruptcy jurisdiction. The early development of bankruptcy jurisdiction is essentially a conflict between the Federal bankruptcy jurisdiction mode and the British model,the main difference between the two model lies in “the suits that are brought or prosecuted by the trustees against the adverse claimants for the recovery of the funds or property are Bankruptcy proceeding in Federal model or not”.The British model of bankruptcy law “controversy on the common law and equity” is distinguished from the “insolvency proceeding”, the litigation that the trustee filed against the rights of the claimant doesn’t belong to “bankruptcy proceedings”and that the trustee can only prosecute the suit in the district court and state court by “complete proceeding”, the trial about the bankruptcy proceedings in the district court by “summary”.However,the federal bankruptcy jurisdiction include the bankruptcy trustee litigation.Ultimately, the United States established the federal bankruptcy jurisdiction mode. In fact, this part is also addressing two essential problems: one is the power division between the federal district court and the state court, and the other one is the power division between the district court bankruptcy court. The jurisdiction of the federal courts are limited but the state courts are not which has general jurisdiction.Early American bankruptcy law modified the federal bankruptcy jurisdiction many times,and the scope of the bankruptcy court goes through expansion, deflation and expansion.The federal court enjoys widespread federal bankruptcy jurisdiction ultimately. However, the segmentation problem of the jurisdiction between the federal court and bankruptcy court, Congress initially granted all the federal bankruptcy court jurisdiction to bankruptcy court directly, but make a change in 1984, authorized district court to gives the bankruptcy court the limited bankruptcy jurisdiction(such provisions are still in effect).The bankruptcy court jurisdiction is thus restricted ostensibly,but that still enjoy broad jurisdiction.The limitation of jurisdiction of bankruptcy court which should be clear becomes relatively vague.The second part is about the boundaries of the bankruptcy judicial system. Firstly,give a knowledge of the 1984 amendments,mainly about the judicial system of the bankruptcy. The article followed a clear constitutional limitations that bankruptcy court followed, and point the clear risk that the bankruptcy courts will face in its constitutional status.On the basis of the constitutional restrictions of the bankruptcy court,I’ll combine the current jurisdictional provisions with constitution restrictions to define the boundary of the bankruptcy court jurisdiction. The boundary issue of the bankruptcy court jurisdiction is the power division and coordination between the district court and the state court,as well as the district court and the bankruptcy court,and the most important problem is the latter.From a macro point of view, the 1978 Reform Act, a federal bankruptcy court has full jurisdiction over bankruptcy, under the 1984 amendments, the bankruptcy court ultimately belongs to the district court, and becomes the “attachment” to the district court.The scope of the bankruptcy court jurisdiction is limited. However, from the more subtle perspective, we should further analyze the existing bankruptcy system to define the boundary of the bankruptcy court. Firstly analyzing from the three kinds of bankruptcy jurisdiction,combining with the typical, important and highly cited the cases to define the boundary. Then the paper combines the core and non-core proceedings under the 1984 amendment, which is the placement of the bankruptcy jurisdiction.The third part is how to exclude the jurisdiction of the bankruptcy court from some cases from the opposite side, as well as the new impact of the Stern v.Marshall to the bankruptcy court jurisdiction regime,then make a discussion about two relatively controversial kinds of litigation. This paper give three ways to exclude the jurisdiction of the bankruptcy court: Remand to state courts, Abstention,Withdrawal of Reference.After the 1984 amendments, the jurisdiction of the bankruptcy system on the statute does not make any change, and even the Supreme Court keep silent during this time. However, the Supreme Court issued Stern v. Marshall in 2011 that once again sparked discussion about the jurisdiction of the bankruptcy court, and the categories which fall within the bankruptcy court originally also face the controversy,like “the bankruptcy court entering a final judgment on a fraudulent conveyance claim”,“the litigants consent to bankruptcy courts’ authority to enter a final judgment on ‘non-core-related-to’ matters that are not necessary to the resolution of the bankruptcy” However, although the Supreme Court make it clear that the bankruptcy judge in Stern v.Marshall can not enter a final judgment on the litigation that the debtor brought against any third parties on the basis of the state law and common law, the current Congress did not amend the relevant statutes and the supreme court also did not make other decisions for other relative controversy.Therefore, the bankruptcy court must continue to hear these matters and make an award. In this regard, some scholars have pointed out that although the case give a shock to the judicial system of the bankruptcy court, the most significant short-term impact of the ruling may only increase the number of motion applications. Therefore, the profound impact of the case to the jurisdiction still need some time to prove.In one word, the boundary of the bankruptcy court jurisdiction is complex, we can only combine the existing provisions on jurisdiction with the typical cases to prove the behind meaning of the jurisdictional provisions,giving a reference which belongs to the clarification of the bankruptcy court,or how to exclude the jurisdiction of the bankruptcy court.Studying the jurisdiction of the bankruptcy court is beneficial to the bankruptcy professionals,for example, the insolvency practitioners should be able to identify and investigate a number of important factors that affect the interests of their clients under the Bankruptcy Code to make the right choice of the location, finally achieving the best interest for their clients,which is also the real significance of this paper.