In the United States, bankruptcy court is in
the domain of the Federal Government. In order for there to be some degree of
consistency across America for individual bankruptcy courts in
the 94 Federal districts, certain uniform bankruptcy court rules
must govern how proceedings are run. For example, the nation’s appellate courts
are guided in part by the Federal Rules of Appellate Procedure
(FRAP). Both the Court of Appeals and the United
States bankruptcy court system, meanwhile, are influenced by the
provisions outlined in the Federal Rules of Bankruptcy Procedure
(FRBP).
Like the FRAP, the bankruptcy court
rules outlined by the FRBP are handed down to bankruptcy courts by the
Supreme Court. Imaginably, they are policies unto themselves that pertain
specifically to bankruptcy in America. The following are considerations of the
Federal Rules of Bankruptcy Procedure’s structure and their role in the United
States bankruptcy court system:
The FRBP are rather expansive, considering all that is contained within the individual
chapters of Title 11 of the United States Code. After all,
these bankruptcy court rules exist as an appendix to the more specific bankruptcy court
rules of the Bankruptcy Code.
The beginnings of the Federal Rules of
Bankruptcy Procedure as applicable in the United States bankruptcy court
program can be traced back to the 1930s in the passage of the Rules Enabling
Act (REA) that conferred policy–making powers on the Supreme Court and has been responsible
for the continued change of similar codified court guidelines, such as the Federal Rules of Criminal Procedure. Section
2075 of the REA in particular grants the Supreme Court the “power to
prescribe by general rules, the forms of process, writs, pleadings, and
motions, and the practice and procedure in cases under title 11.”
In terms of how the Federal Rules of
Bankruptcy Procedure are practically implemented in the United States
bankruptcy court system today, the FRBP covers a lot of territory with
regard to bankruptcy court rules. Part I refers to details surrounding the
start of proceedings and how they may differ for voluntary and involuntary
petitions. Part II approaches policies on the officers of the court and
pre-trial meetings (e.g. meetings of the creditors). Part III involves
discussion of creditors’ claims and the development of repayment
plans.
