Supreme Court rules on power of bankruptcy judges

Posted on Wednesday, May 27th, 2015 at 8:41 pm    

The Supreme Court determined on May 26 that bankruptcy judges have the power to rule on certain bankruptcy cases they originally did not have legal authority over, thus increasing the power of the courts in bankruptcy matters, the Wall Street Journal reported.

With a 6-4 ruling, the 1,000 bankruptcy judges around the United States were given the power to make final decisions on legal disputes when the consent of all involved parties is given.

This is a follow up case of the 2011 Supreme Court decision of Stern v. Marshall. The dispute handled an inheritance issue involving former Playboy playmate, Anna Nicole Smith, and her son. The court ruled that bankruptcy judges only had authority over cases that stemmed from bankruptcy itself and therefore could not rule over the inheritance court case. With the new ruling, however, bankruptcy judges have been granted the power to handle a broader range of cases when the defendant and plaintiff give consent.

Bankruptcy law is a complicated process that will determine the status of your financial situation for years to come. At the Bradford Law Offices, PLLC, our skilled business bankruptcy attorneys have the experience to help you throughout the entire legal process of declaring bankruptcy. Please call (919) 758-8879 for more information.