Chapter 4, A. Statutory Basis for Jurisdiction

• Jurisdiction: United States

A. Statutory Basis for Jurisdiction

Federal bankruptcy jurisdiction is extremely broad and covers most actions that involve or might affect the debtor. Bankruptcy courts themselves are courts of limited jurisdiction. Rather, original jurisdiction is vested in the federal district courts pursuant to 28 U.S.C. § 1334. Section 1334 establishes the federal courts' jurisdiction over bankruptcy cases, civil proceedings arising out of those cases, and property of the bankruptcy estate, as follows:

(a) Except as provided in subsection (b) of this section, the district courts shall have original and exclusive jurisdiction of all cases under title 11.
(b) ... notwithstanding any Act of Congress that confers exclusive jurisdiction on a court or courts other than the district courts, the district courts shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases under title 11.
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(e) The district court in which a case under title 11 is commenced or is pending shall have exclusive jurisdiction — (1) of all of the property, wherever located, of the debtor as of the commencement of such case, and of property of the estate[.]

District courts, however, may refer bankruptcy matters to the bankruptcy court in their districts pursuant to 28 U.S.C. § 157(a). Most, if not all, district courts have standing orders that automatically refer bankruptcy matters to their bankruptcy courts.

While the statutory language of § 157(a) allows the district court to refer "any and all cases under title 11 and any or all proceedings arising under title 11 or arising in or related to a case under title 11" to the bankruptcy court, the bankruptcy court itself...