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The Impact of Stern on Secured Creditors

ABA Business Bankruptcy Committee
10/29/2018

Stern v. Marshall, 564 U.S. 462 (2011), held that despite the 28 U.S.C. § 157(b) list of core proceedings that bankruptcy courts could finally determine, the Constitution precluded final decisions by an Article I bankruptcy court on a state law counterclaim not resolved in the process of ruling on a creditor's proof of claim.  The Court later held that bankruptcy courts could utilize the non-core procedure for submitting proposed findings of fact and conclusions of law to the district court in Stern-type cases.

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