Attempting to head off a potential crisis in America’s bankruptcy court system, U.S. Senators Chris Coons (D-Del.) and Johnny Isakson (R-Ga.) today introduced bipartisan legislation that would extend 30 temporary bankruptcy judgeships in 14 states and Puerto Rico to ensure that those key positions do not become vacant.
“For many, economic recovery depends on bankruptcy courts that have the capacity to fairly and expeditiously resolve personal and corporate bankruptcies,” Chris, a member of the Senate Judiciary Committee, said. “Talented bankruptcy judges can help turn a likely economic loss into a successful reorganization that protects jobs and creditors. If these judgeships are allowed to expire, our courts will become overwhelmed at the expense of jobs, creditors, and our nation’s economy.”
Faced with increasing demand on the federal court system, Congress has created dozens of temporary bankruptcy judgeships over the last 20 years to help the courts keep pace. The Temporary Bankruptcy Judgeships Extension Act of 2011 heeds the recommendations made earlier this year by the non-partisan Judicial Conference of the United States, whose biennial review urged Congress to prevent the expiration of the 30 temporary bankruptcy judgeships covered by this bill by extending each by five years. The statutory authorization to fill these judgeships, should they be vacated, has already lapsed.
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