BANKRUPTCY COURT
FROM THE BENCH
BANKRUPTCY COURT
By Wendy L . Hagenau Judge , United States Bankruptcy Court Northern District of Georgia
Many of you have not been to and may hope to never practice before the United States Bankruptcy Court . Nevertheless , bankruptcy touches all areas of law , and the bankruptcy court is the federal court with which most people come into contact . The bankruptcy court construes state law and proceedings regularly , so even state litigators may need a primer on the bankruptcy court .
The bankruptcy court is an Article I court created by Congress to fulfill the mandate in Article I , Section 8 of the United States Constitution to establish “ uniform laws on the subject of bankruptcies throughout the United States .” Bankruptcy judges are appointed for 14-year terms by the Court of Appeals and preside over bankruptcy cases and virtually all matters arising in those cases , including deciding issues arising under the Bankruptcy Code or which are otherwise related to the bankruptcy case . In the Northern District of Georgia , the majority of the bankruptcy cases are filed by individuals . These filings may be in Chapter 7 ( liquidation ), Chapter 13 ( consumer reorganization ), or Chapter 11 ( reorganization for debtors with higher debt levels ). These cases present many different issues . While the bankruptcy judge obviously applies bankruptcy law , the rights of the parties in property and creditors ’ claims are determined by nonbankruptcy law – most often state law such as contract and real estate law . Many times , bankruptcy judges must construe the effect of a state court judgment or order . Domestic relations issues also frequently arise because one of the primary causes of bankruptcy is divorce . The bankruptcy court may allow some state court litigation to proceed , in whole or in part , but may decide the state law issues itself . Bankruptcy judges publish many opinions on state law .
These are similar , but not identical , to the Federal Rules of Civil Procedure – and differ particularly in the area of service of process ( both in method and scope ) and various time limits . There are local rules related to the Federal Rules of Bankruptcy Procedure , which should be consulted as well . Second , many of the Federal Rules of Bankruptcy Procedure apply in “ contested matters ” which are opposed motions , and not just in adversary proceedings . Third , bankruptcy courts hold hearings on almost everything and each judge holds regular “ mass ” calendars to hear matters taking only 15-20 minutes . You should check each judge ’ s web page for the calendaring procedures . Fourth , bankruptcy courts are courts of limited jurisdiction . They do not grant divorces or establish property division . They do not probate a debtor ’ s will . They are limited in their ability to enter final judgments against non-debtors and non-creditors .
Considering these unique procedures , and the breadth of substantive law at issue , the quality of the lawyers who practice regularly before the court has impressed me . These practitioners must know substantive and procedural bankruptcy law , plus state law , tax law and many federal laws enacted to protect consumers ( most of which are acronyms like FDCPA , TILA and RESPA ). We are very fortunate to have these attorneys and , if you have occasion to be in bankruptcy court , consider consulting with a bankruptcy practitioner for any nuances . You may also contact the courtroom deputies for each judge with any procedural questions . We welcome state court practitioners to the bankruptcy court . ■
If you find yourself in the bankruptcy court , it will be helpful for you to note several procedural items . First , the bankruptcy courts follow the Federal Rules of Bankruptcy Procedure .
14 May 2016