In bankruptcy practice, two questions are presented: (i) is the claim arising under or related to a bankruptcy case or a civil proceeding arising under the Federal Bankruptcy Code, which is the basis for federal court jurisdiction, and (ii) even if federal jurisdiction exists and the matter is referred for adjudication to the bankruptcy court, does the bankruptcy court have the power to adjudicate the case and enter a final order or judgment?
Often these two separate but equally important questions are confused. Two U.S. Supreme Court decisions almost 30 years apart and a recent Delaware bankruptcy court ruling demonstrate that understanding the breadth of federal jurisdiction over claims involving a debtor in bankruptcy and what cases the bankruptcy court can hear is no easier today than in 1983, when one of the authors began practicing bankruptcy law.
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