Bankruptcy Advisory: Supreme Court: Bankruptcy Courts Cannot Decide Debtors’ State Law Counterclaims
6/30/2011
In a decision that may have significant practical implications to the practice of bankruptcy law, the U.S. Supreme Court recently declared, on constitutional grounds, that a bankruptcy court cannot exercise jurisdiction over a debtor’s state law counterclaims, thus considerably limiting the ability of the bankruptcy court to fully and finally adjudicate claims in a bankruptcy case.
