Bankruptcy litigation and appeal process

You know when you file bankruptcy, there is a strong chance that there may be some issues which can lead to litigation, and your attorney has to be ready for that. Of course, it is your only chance to get your name cleared and seek a discharge. Litigation in the bankruptcy does not stop in the bankruptcy court. Both parties may appeal the trial court decision. The appeal from bankruptcy court may be appealed either to a district court or bankruptcy appellate panel. By its express terms, 28 U.S.C. Section 158 (a) provide for a review by a district court or bankruptcy appellate panel of certain orders “entered by bankruptcy judges in cases and proceedings referred under 28 U.S.C. Section 157”. The appellate jurisdiction of district courts and bankruptcy appellate panels are limited to proceedings in which bankruptcy courts are authorized to issue binding judicial determination.

Core Proceedings: Bankruptcy courts are authorized to enter binding judgments and orders in “core proceedings,” a term defined in 28 U.S.C Section 157, but only if the preceding otherwise arises under a provision of title 11 of the United States Code or arises in a Title 11 Case.

District Courts have jurisdiction over “final judgments, orders, and decrees” entered by bankruptcy judges, as well as “from interlocutory orders and decrees issued under section 1121(d) of title 11.

A bankruptcy appellate panel is a panel comprised of three bankruptcy judges to hear appeals from bankruptcy court orders. The bankruptcy judges who serve on an appellate panel hear appeals from orders in districts other than the districts in which they serve. Nevada has an appellate panel with its headquarter in Pasadena, California.

Courts of appeals have appellate jurisdiction over all “final decisions, judgments, orders, and decrees’ entered by bankruptcy appellate panels and district courts in their appellate capacity.

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