Traditionally, defendants in actions brought by debtors or trustees have struggled to level the playing field and extricate themselves from the bankruptcy court, a forum often perceived as the plaintiff’s “home court.”
At one time, litigants hoped to utilize motions to withdraw the reference from the bankruptcy court pursuant to 28 U.S.C. § 157(d), to enhance their prospects of a favorable resolution from a presumably friendlier judicial forum. However, more often than not, movants were disappointed by the district courts’ natural reluctance to relieve the bankruptcy courts of their intended role and increase their own considerable workloads.
Reprinted with permission from the June 2012 edition of The Bankruptcy Strategist© 2012 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-257-3382 or reprints@alm.com.