Court Structure

Court Structure, Jurisdiction and Procedure Under the Reform Act

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.

San Diego, California

Welcome to San Diego, California's second largest city. Where blue skies keep watch on 70 miles of beaches and a gentle Mediterranean climate begs for a day of everything and nothing. Bordered by Mexico, the Pacific Ocean, the Anza-Borrego Desert and the Laguna Mountains, San Diego county's 4,200 square miles offer immense options for business and pleasure.

Bankruptcy: A legal declaration

Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed. In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the bankrupt individual or organization).

 

Chapter 7 Chapter 13
  • Are you spending almost all of your income to pay living expenses?
  • Are you behind on your home loan? (Need to stop foreclosure and save your home)
  • Are creditors calling and demanding money that you need to feed yourself and your family?
  • Do you owe taxes or student loans that do not meet the requirements for a discharge?
  • Is there no money left to pay credit cards, medical debt or judgments?
  • Do you want to protect a friend or relative who co-signed for you?
  • Are wages needed for living expenses being garnished by a creditor?
  • Do you need to bring current child or spousal support payments?
  • Was your debt incurred involuntarily, as by sudden calamity or illness?
  • Do you have debts incurred by reason of drunk driving or fraud?
  • Have you had a recent job loss or a marital break-up?
  • Do you need to protect non-exempt assets?
  • Have you suffered emotional distress from creditor harassment and are you eligible for relief under 7?
  • Have you previously filed Chapter 7 within the last eight years?