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The Bankruptcy Reform Act followed the approach of the Chandler Act in continuing the bankruptcy court as an adjunct of the district court with the express grant of jurisdiction being made to the district court. Although the bankruptcy judges were not made Article III judges, there were a number of changes designed to make the bankruptcy judge position more attractive. The judges, after the transition period, were to be appointed for terms of 14 years by the president with the advice and consent of the Senate, after having given due consideration to the nominees recommended by the judicial council for the circuit. The salary for the position was increased and provision made for increased staff support, including law clerks. Most of these changes were to take effect on April 1, 1984 and pending such change the existing referees, already called bankruptcy judges by rule, became statutory bankruptcy judges and had their terms extended to April 1, 1984.
The Bankruptcy Reform Act contained a broad grant of jurisdiction to the district courts. The bankruptcy court for the district in which the case was pending was to exercise all jurisdiction conferred on the district courts and had exclusive jurisdiction of the debtor's property wherever located. Further, the bankruptcy court was given the powers of a court of equity, law, and admiralty and was given a limited power to issue writs of habeas corpus. The bankruptcy court could conduct jury trials but might order the issues arising in involuntary cases tried without a jury. The district court or the bankruptcy court could abstain from hearing a proceeding arising under the Code or in a case under the Code, and the court's decision with respect to abstention was not subject to review on appeal. Jurisdiction reached not only cases but "all civil proceedings arising under the bankruptcy code or arising in or related to cases under the Code. This was a very broad grant indeed and meant that virtually everything that would have been thought of as plenary litigation under the Act could, under the Bankruptcy Code, be heard by the bankruptcy court.
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