All Press Releases for May 19, 2014
Chattanooga Bankruptcy Attorneys Clark & Washington Discuss The Continuing Trend Towards Limiting the Bankruptcy Court Power
The Supreme Court has limited the powers of bankruptcy courts over the last few years and is due to rule on another case that may further limit those powers.
CHATTANOOGA, TN, May 19, 2014 /24-7PressRelease/ -- The Chattanooga bankruptcy lawyers at Clark & Washington have noticed that there has been an ongoing, nationwide trend towards limiting the power of bankruptcy courts.
In 2011, the U.S. Supreme Court threw bankruptcy litigators and the entire bankruptcy court system a major curveball when it ruled on Stern v. Marshall. The Court dismissed a victory Marshall won in Los Angeles bankruptcy court and found that certain litigation could no longer be assumed as part of the purview of the bankruptcy court. Specifically, counterclaims that were advanced by the debtor to defend themselves against claims being made by creditors were found to be the responsibility of federal district courts, not bankruptcy courts.
This ruling disrupted the existing viewpoint that there should only be occasional supervision from district courts for bankruptcy litigation, the vast majority of which was handled in specialized bankruptcy courts. This system sped up the process of bankruptcy litigation by keeping all but the most complex cases from needing to schedule a hearing with an already overly busy district court judge.
Most recently, the U.S. Supreme Court heard the case of Executive Benefits Insurance Agency v. Arkison. This 2014 case aims to further clarify which bankruptcy litigation issues can be handled by bankruptcy judges and which must be presided over by federal district judges.
The outcome of Executive Benefits Insurance Agency v. Arkison has yet to be determined, but Clark & Washington is concerned that the Supreme Court will continue the trend of limiting the power of the bankruptcy court. The firm believes that bankruptcy courts serve a distinct purpose in simplifying the bankruptcy litigation process, and it hopes the courts will not be further limited.
About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.Chattanooga-bankruptcy-attorney.com.
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