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Simple English definitions for legal terms
core proceeding
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A quick definition of core proceeding:
A core proceeding is a legal case that involves claims that have a big impact on the relationship between someone who owes money (a debtor) and the people they owe money to (creditors). This could include things like trying to get back money that was given to someone else before the debtor filed for bankruptcy. In these cases, the bankruptcy court (a special court that deals with bankruptcy cases) makes the final decision instead of a regular court. There are also other types of cases that the bankruptcy court can hear if they are related to the bankruptcy, like cases that involve federal laws.
A more thorough explanation:
A core proceeding is a legal case that involves claims that significantly impact the relationship between a debtor and creditor. These claims may include actions to recover preferential transfers, which are transfers made by the debtor to a creditor before filing for bankruptcy. In a core proceeding, the bankruptcy court is responsible for conducting the trial or hearing and issuing a final judgment.
Additionally, a core proceeding may involve subject matter that falls within the scope of federal bankruptcy law and the management of the debtor's estate. This means that a federal bankruptcy court may hear cases that have an independent basis for subject-matter jurisdiction, such as a federal question.
Examples of core proceedings include:
- An action to recover a preferential transfer made by the debtor to a creditor before filing for bankruptcy.
- A dispute over the validity or priority of a lien on the debtor's property.
- An objection to the discharge of a debt owed by the debtor.
These examples illustrate how a core proceeding involves claims that significantly impact the debtor-creditor relationship and fall within the scope of federal bankruptcy law. In each case, the bankruptcy court would be responsible for conducting the trial or hearing and issuing a final judgment.