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Temporary bankruptcy judgeships extended

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April 22, 2012

Washington, D.C.: A five-year extension to 29 temporary bankruptcy judgeships in 14 states was approved by the U.S. Senate on April 19, 2012. The extension allows for the authorization of replacements to fill vacancies in judgeships within the bankruptcy system that may arise via retirement or death. Prior to the passage of this bill, replacements could not be appointed without active Congressional authorization. The seats affected by this bill were set up to be temporary.

Dozens of temporary seats within the federal bankruptcy courts have been created by Congress over the past 20 years. With increasing demand on these courts, there was concern about the possibility of a judicial backlog if seats went unfilled. Delaware Senator Chris Coons, the sponsor of the bill, said that "Having a full bench of bankruptcy court judges will allow for a renewed economic stability for many who have fallen into financial hardships."[1]

Coons also suggested that the bill was focused on jobs. "If a bankrupt company can get to a judge promptly, it allows the corporation to move forward and continue to pay its employees and its creditors."[2]

The courts affected by the bill are as follows:

United States bankruptcy court.jpg

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