The Wall Street Journal on Tuesday published an article on the still-urgent need for the extension of dozens of temporary bankruptcy judgeships to avert a crisis in America’s bankruptcy courts. Senator Chris Coons introduced the bipartisan Temporary Bankruptcy Judgeship Act in November to extend the authorizations for 30 temporary bankruptcy judgeships in 14 states and Puerto Rico and prevent un-fillable vacancies. The bill was voted out of the Judiciary Committee in December and now awaits consideration by the full Senate.
While legislation to ease the pain is stalled in Congress, some bankruptcy courts are bringing in visiting judges and asking judges to work more hours. And judges who are eligible to retire are grappling with whether to stay or go.
“The word guilt certainly can describe some feelings,” Judge Arthur Gonzalez told NLJ of his recent retirement from the U.S. Bankruptcy Court for the Southern District of New York.
Gonzalez’s departure means a lost judicial seat in one of the busiest bankruptcy courts in the country thanks to a pro-debtor reputation that attracts giant corporations like Borders and General Motors.
His seat is one of two judgeships lost so far upon the expiration of Congress’ temporary judgeship program, under which lawmakers created 28 temporary judicial spots. If any judges left during the five-year program, courts could fill the vacancy. But once the program ran out, the seat of any departing judge–whether permanent or temporary–would go unfilled.
The House of Representatives passed a bill to extend 30 temporary judgeships for five years, and the legislation’s counterpart remains pending in the Senate. But some lawmakers are concerned about the cost of the respective bills, sponsored by Sen. Christopher Coons of Delaware and Rep. Lamar Smith of Texas. The nonpartisan Congressional Budget Office has estimated that the Senate bill could cost about $5 million over five years, depending upon the number of vacancies to be filled.
Click here to read the full article on The Wall Street Journal’s website.
Click here to download a copy of the Temporary Bankruptcy Judgeship Act.
Click here to read the national press release introducing the legislation.