CHAPTER 9 - § 9.1 • INTERPLAY BETWEEN FEDERAL AND STATE LAW

• Jurisdiction: Colorado

§ 9.1 • INTERPLAY BETWEEN FEDERAL AND STATE LAW

The Bankruptcy Code has its genesis in Article 1, § 8(4) of the United States Constitution, which grants Congress the power to establish uniform laws on the subject of bankruptcy. The Bankruptcy Code is located at Title 11 of the United States Code, 11 U.S.C. §§ 101, et seq.

While the Bankruptcy Code is federal law, questions involving substantive property rights or liability are generally determined by state law. Therefore, unless the Bankruptcy Code expressly modifies the rights of the parties, state law controls.

28 U.S.C. § 1334(a) grants district courts original and exclusive jurisdiction over all cases arising under Title 11. 28 U.S.C. § 1334(b) grants district courts original but not exclusive jurisdiction over all civil proceedings arising under Title 11, or arising in or related to cases under Title 11. 28 U.S.C. § 151 provides that bankruptcy courts are units of the district court. Pursuant to 28 U.S.C. § 157(a), each district court may provide that any and all cases under Title 11 be referred to the district's bankruptcy court. In Colorado...