Press Release
Administrative Office of the U.S. Courts
Release Date: September 22, 1997

CASELOAD GROWTH SUPPORTS NEED FOR NEW

BANKRUPTCY JUDGESHIPS

Certain judicial districts have sustained a particularly high growth in their bankruptcy caseload requiring the creation of 18 new bankruptcy judgeships, a representative of the Judicial Conference of the United States told a Senate subcommittee today.

"A request for additional judicial resources is made only after a pattern of need demonstrates the judicial caseload cannot be administered by other methods, such as utilization of more efficient and effective case management procedures, assistance from other districts or circuits, expansion of automation programs, and additional supporting personnel," said Judge David R. Thompson (9th Cir.), chair of the Judicial Conference's Committee on the Administration of the Bankruptcy System. As a result, he added, each of the districts currently requesting a new bankruptcy judgeship has experienced over a sustained period of time a caseload that its current judges are unable to administer and adjudicate. Judge Thompson testified today before the Senate Judiciary Subcommittee on Administrative Oversight and the Courts.

The Judicial Conference has recommended that 11 of the 18 new judgeships be temporary, which creates the position for a minimum of five years. On July 28, 1997, the House passed H.R. 1596, which would establish the 18 new bankruptcy judgeships. New bankruptcy judgeships last were created in 1992, when Congress authorized 35 positions.

In 1996, for the first time in history, the number of bankruptcy petitions filed in a single year topped 1 million. The record was followed by two more--the number of petitions filed in the first quarter of 1997 (335,073) was the highest quarterly total ever, until it was topped by the number filed in the second quarter (367,168).

In his testimony, Judge Thompson addressed the concerns of Senator Charles E. Grassley, the chair of the subcommittee, who questioned whether the need for additional judgeships in some districts could be met if existing bankruptcy judges curtailed their travel.

"Your long record of seeking efficiencies and reduced costs is an enviable one," Judge Thompson said. "The sincerity of your efforts and the integrity of your motives are without question." Judge

Thompson told the subcommittee that judges' participation in continuing education, training, and the administration of the bankruptcy system are all an integral part of the duties of the office.

"These and many other activities that take place outside the bankruptcy court are every bit as important to the delivery of justice as what happens inside the courtroom," Judge Thompson said. "The variety of issues which come before any bankruptcy court today is extensive and expanding. . . . A bankruptcy judge who does not have sufficient working knowledge of these issues cannot effectively adjudicate related disputes or settle claims regarding these matters."

Judge Thompson continued, "The cost to society of an overburdened bankruptcy system is enormous in many respects . . .much more than the cost of the additional judges." Furthermore, he added, "Delays for court time and other judicial access becomes inevitable. . . and often assets available for creditors dissipate, proceedings become fragmented, professional fees increase, and circuit resources are not used efficiently."

In closing, Judge Thompson stated, "I sincerely request your assistance in authorizing these desperately needed new judgeships."

###