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April 4, 2008, Newsletter Issue #58: Federal Bankruptcy Court
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Tip of the Week
There are 94 federal judicial districts in the United States, all of which handle bankruptcy matters. Bankruptcy cases cannot be filed in state court. T here are several bankruptcy courts in each state, and each one's territory covers several counties. There is irony, however, as most creditors' and debtors' rights and obligations in bankruptcy are governed by state, not federal law. Also, to further cloud the issue, the United States district courts have subject matter jurisdiction over bankruptcy. However, each district court may refer bankruptcy matters to the bankruptcy court. Most district courts have a standing “reference” order to that effect, so that all bankruptcy cases in the district are handled by the bankruptcy court. To further confuse you, bankruptcy court judges’ decisions are final, except that they are subject to appeals to appropriate district judges for review of their decisions .
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