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Congress passes bill to temporarily extend bankruptcy judgeships

Congress passes bill to temporarily extend bankruptcy judgeships

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Congress has passed legislation that will temporarily save dozens of bankruptcy judgeships in 14 states and Puerto Rico from expiring.

The Temporary Bankruptcy Judgeships Extension Act of 2012, H.R. 4967, which is expected to be signed into law by President Barack Obama, extends for an additional five years 29 temporary judgeships previously created by Congress.

The move affected bankruptcy courts in the 1st, 2nd, 3rd, 4th, 6th, 9th and 11th Circuits.

Technical federal rules limit the ability to fill certain bankruptcy judgeship vacancies, leaving some seats to stand vacant after bankruptcy judges’ terms expire or judges retire. Congress has repeatedly passed temporary measures to allow those vacancies to be filled in order to keep the federal bankruptcy court benches fully staffed and stave off filing backlogs. Bankruptcy filings have only recently begun to fall after nearly five years of steadily increasing caseloads after passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

“Having a full bench of bankruptcy court judges will allow for a renewed economic stability for many who have fallen into financial hardships,” said Sen. Chris Coons, D-Del., in a statement.

Coons sponsored the Senate version of the bill, S. 1821.

“Talented bankruptcy judges can help turn a likely economic loss into a successful reorganization that protects jobs and creditors,” he said. “This legislation will ensure that these judgeships remain in place and continue to fairly and expeditiously resolve bankruptcy claims – a key component of our economy as companies and individuals get back on their feet.”

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