03.22.2017 | Articles / Publications
The Banking Law Journal: Who Decides Whether Bankruptcy Jurisdiction Exists after Removal from State Court
In an article published in the 2017 April issue of The Banking Law Journal, Regan Loper provides insight on who decides whether bankruptcy jurisdiction exists under the Bankruptcy Code. The majority of courts facing this issue have found that the District Court “must confirm its own jurisdiction before sending it to bankruptcy.” The minority approach is to automatically refer claims to the bankruptcy court if the removal is based on federal jurisdiction under Section 1334. Loper explains that while the majority approach correctly reads the Bankruptcy Code to require the district court to decide bankruptcy jurisdiction first, the minority approach reaches a more effective rule by relying on the role and expertise the bankruptcy judge already exercises. The bankruptcy court has an in-depth understanding of the debtor’s bankruptcy case and the practical relationship that the debtor’s state law claim has the bankruptcy.