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Simple English definitions for legal terms
noncore proceeding
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A quick definition of noncore proceeding:
A noncore proceeding is a legal case that involves a claim that will affect a bankrupt person's estate, but it does not arise under bankruptcy law and could be resolved in a state court. For example, a lawsuit between the bankrupt person and a third party for damages caused by the bankrupt person's actions. This type of case must be heard in federal district court unless the parties agree to bankruptcy court jurisdiction or the district court refers the matter to the bankruptcy court or state court.
A more thorough explanation:
Noncore Proceeding
A noncore proceeding is a legal case that involves a claim that will affect the administration of a debtor's estate, but does not arise under bankruptcy law and could be adjudicated in a state court.
For example, if a debtor is involved in a tort action with a third party, it would be considered a noncore proceeding. This type of case must be adjudicated in federal district court unless the parties consent to bankruptcy-court jurisdiction or unless the district court refers the matter to the bankruptcy court or to state court.
Noncore proceedings are also known as related proceedings.
- A debtor is involved in a personal injury lawsuit with a third party.
- A debtor is involved in a breach of contract lawsuit with a third party.
These examples illustrate noncore proceedings because they involve claims that will affect the administration of the debtor's estate, but do not arise under bankruptcy law and could be adjudicated in a state court.