U.S. Sens. Marco Rubio (R-FL), Chris Coons (D-DE), Debbie Stabenow (D-MI), and Bill Nelson (D-FL) introduced legislation that would ensure that individuals and corporations have access to bankruptcy courts even when temporary judgeships expire.
The Bankruptcy Judgeship Act seeks to amend the federal judicial code to authorize the appointment of additional bankruptcy judges in certain jurisdictions. Specifically, it would allow the conversion of temporary bankruptcy judges to permanent bankruptcy judges in specified judicial districts in Delaware, Florida, Maryland, Michigan, Nevada, North Carolina, Puerto Rico, Tennessee, and Virginia.
“Federal bankruptcy laws make it possible for individuals and businesses to reorganize their debts, but a significant impediment to a well-functioning system has been Congress’ failure to appropriately authorize judgeships as recommended by the nonpartisan Judicial Conference of the United States,” Rubio said.
“This legislation will implement recommendations from the Judicial Conference that will help ensure more manageable caseloads across the country – including in Florida and Puerto Rico — and ultimately a more efficient system,” Rubio added.
Coons said it’s essential for Congress to extend bankruptcy judgeships in judicial districts where they are most needed.
“Talented bankruptcy judges can help turn a likely economic loss into a successful reorganization that protects jobs and creditors. This legislation will ensure that these judgeships remain in place and courts can continue to fairly and expeditiously resolve bankruptcy claims — a key component of our economy as companies and individuals get back on their feet. This bill will ensure that when bankruptcy judges on courts with temporary judgeships retire, their colleagues will not be left with crushing caseloads that restrict timely access to our bankruptcy courts,” Coons said.