‘Troubling’: Split 4th Circuit Rejects ‘History and Tradition’ Challenge to Bankruptcy

“[T]he Constitution grants Article III judicial power over all cases arising under the laws of the United States,” the appeals court held in its 2-1 decision. “The Bankruptcy Code is a law of the United States. So, petitions for relief under the Bankruptcy Code—even those filed by solvent debtors—arise under the laws of the United States.

       

“[T]he Constitution grants Article III judicial power over all cases arising under the laws of the United States,” the appeals court held in its 2-1 decision. “The Bankruptcy Code is a law of the United States. So, petitions for relief under the Bankruptcy Code—even those filed by solvent debtors—arise under the laws of the United States.