A federal bankruptcy judge is a judicial officer of a United States district court who is appointed by the majority of judges of the U.S. court of appeals to which his or her specific district court is attached. Bankruptcy judges exercise jurisdiction over bankruptcy matters. The number of bankruptcy judges is determined by Congress. Bankruptcy judges are appointed for renewable 14-year terms.[1]
As of September 2012, there are 350 authorized bankruptcy judgeships, including 34 temporary judgeships.[2]
Congress receives periodic advice on the number of bankruptcy judges needed from the Judicial Conference of the United States.
The position of bankruptcy judge was established by Congress in 1978 as part of broad legislation that reorganized the nation’s bankruptcy system (92 Stat. 2657). Under the Bankruptcy Act of 1898, referees appointed by district judges oversaw the administration of bankruptcy cases in the district courts, and a series of subsequent acts increased the judicial duties of the referees.
In 1973, the Supreme Court issued rules that recognized the importance of these judicial duties and applied the title of "bankruptcy judge" to the referees. Also in 1973, the congressionally chartered Commission on Bankruptcy Laws of the United States recommended the formal establishment of bankruptcy judgeships to preside over judicial proceedings related to bankruptcy in courts that would be independent of the U.S. district courts. The commission called for the appointment of executive branch officers to carry out administrative responsibilities related to bankruptcy cases.
Over the next five years, Congress considered a range of bills to establish bankruptcy courts with their own judges. Much of the debate concerned the method of appointment and terms of service for bankruptcy judges. The Bankruptcy Reform Act of 1978 established bankruptcy courts in each judicial district, with bankruptcy judges appointed by the President and confirmed by the Senate for terms of fourteen years. The act relieved the bankruptcy judges of the administrative duties of the referee system and established a pilot program for U.S. trustees who would assume these responsibilities. The act also set a transition period within which those appointed under the referee system would continue in office until March 31, 1984, or until a successor took office. Upon full implementation of the act in 1984, two bankruptcy judges were to serve on the Judicial Conference of the United States.
29 previously-existing temporary bankruptcy judgeships were set to expire within months of May 2012. Many of these temporary positions, approved for five-year terms, were created in 2005 to deal with an increase in bankruptcy filings. H.R. 4967, or the Temporary Bankruptcy Judgeships Extension Act of 2012, signed by Obama on May 31, 2012, extends these judgeships for another five years.[3]
Northern District of Alabama
Middle District of Alabama
Southern District of Alabama
District of Alaska
District of Arizona
The Eastern District of Arkansas and Western District of Arkansas are managed jointly.
Central District of California
Eastern District of California
Northern District of California
Southern District of California
District of Colorado
District of Connecticut
District of Delaware
Middle District of Florida
Northern District of Florida
Southern District of Florida
Middle District of Georgia
Northern District of Georgia
Southern District of Georgia
District of Hawaii
District of Idaho
Central District of Illinois
Northern District of Illinois
Southern District of Illinois
Northern District of Indiana
Southern District of Indiana
Northern District of Iowa
Southern District of Iowa
District of Kansas
Eastern District of Kentucky
Western District of Kentucky
Eastern District of Louisiana
Western District of Louisiana
Middle District of Louisiana
District of Maine
District of Maryland
District of Massachusetts
Eastern District of Michigan
Western District of Michigan
District of Minnesota
Northern District of Mississippi
Southern District of Mississippi
Eastern District of Missouri
Western District of Missouri
District of Montana
District of Nebraska
District of Nevada
District of New Hampshire
District of New Jersey
District of New Mexico
Western District of New York
Eastern District of New York
Southern District of New York
Northern District of New York
Western District of North Carolina
Eastern District of North Carolina
Middle District of North Carolina
District of North Dakota
Southern District of Ohio
Northern District of Ohio
Eastern District of Oklahoma
Northern District of Oklahoma
Western District of Oklahoma
District of Oregon
Eastern District of Pennsylvania
Middle District of Pennsylvania
Western District of Pennsylvania
District of Puerto Rico
District of Rhode Island
District of South Carolina
District of South Dakota
Eastern District of Tennessee
Middle District of Tennessee
Western District of Tennessee
Western District of Texas
Eastern District of Texas
Southern District of Texas
Northern District of Texas
District of Utah
District of Vermont
Western District of Virginia
Eastern District of Virginia
Western District of Washington
Eastern District of Washington
Southern District of West Virginia
Northern District of West Virginia
Eastern District of Wisconsin
Western District of Wisconsin
District of Wyoming
Most bankruptcy cases are filed under one of three main chapters of the Bankruptcy Code: Chapter 7, Chapter 11, or Chapter 13.[4]
Common Types of Bankruptcy |
Under Chapter 7 bankruptcy, a trustee appointed to the case sells the debtor's nonexempt assets and uses the money to pay the creditors. Exemptions vary from state to state, but can include items such as a home, motor vehicles or jewelry up to a certain value, "reasonably necessary" amounts of clothing and household furnishings, and pensions.[5][6]
Chapter 11 bankruptcy is frequently referred to as "reorganization" because it allows businesses and partnerships to propose a plan to pay off their creditors over time while keeping the business alive.[7]
Chapter 13 bankruptcy is also called the "wage earner's plan." It allows individuals to create a plan to repay all or some of their debt within three to five years. Chapter 13 allows an individual to save their home from foreclosure.[8]
In rarer cases, these chapters of the Bankruptcy Code are used: Chapter, 9, Chapter 12, or Chapter 15.
Chapter 9 bankruptcy exists for municipal reorganization, and is intended to offer municipalities protection from their creditors while they reorganize and negotiate their debts. Unlike other chapters of the Bankruptcy Code, there is no requirement for municipalities to liquidate their assets.[9]
"Family Farmer or Family Fisherman" bankruptcy in Chapter 12 of the Bankruptcy Code covers farmers and fishermen with regular income to repay debts in a three to five year framework, depending on the case. Cheaper and more streamlined than Chapter 11, it is intended for small operations, not large corporations.[10]
The newest chapter in the Bankruptcy Code, Chapter 15 was added by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It exists to aid in bankruptcy cases involving more than one country.[11]
As of February 2013, there is one federal bankruptcy judge on the Judicial Conference of the United States. Judge Michael E. Romero, from the District of Colorado, is an Observer of the conference.The Judicial Conference is responsible for all "policy with regard to the administration of the U.S. courts." This includes making periodic recommendations to Congress on the number of bankruptcy judges needed.[12]
As of 2012, federal bankruptcy judges earn $160,100 per year. Since October 1988, the salary of federal bankruptcy judges has been set at 92 percent of the salary of district judges. The following table shows federal bankruptcy judge salaries over time:[13][14]
Federal Bankruptcy Judge Salaries: 1978 - Present | |||
---|---|---|---|
Year | Salary | ||
1978 | $50,000 | ||
1979 | $53,500 | ||
1982 | $58,500 | ||
1983 | $63,600 | ||
1984 | $66,100 | ||
1985 | $68,400 | ||
1987 | $70,500 | ||
1988 | $72,500 | ||
1989 | $82,300 | ||
1990 | $88,800 | ||
1991 | $115,100 | ||
1992 | $119,100 | ||
1993 | $122,900 | ||
1994 | $122,900 | ||
1995 | $122,900 | ||
1996 | $122,900 | ||
1997 | $122,900 | ||
1998 | $125,700 | ||
1999 | $125,700 | ||
2000 | $130,000 | ||
2001 | $133,500 | ||
2002 | $138,000 | ||
2003 | $142,300 | ||
2004 | $145,400 | ||
2005 | $149,100 | ||
2006 | $152,000 | ||
2007 | $152,000 | ||
2008 | $155,700 | ||
2009 | $160,100 | ||
2010 | $160,100 | ||
2011 | $160,100 | ||
2012 | $160,100 |