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Removal

In terms of bankruptcy law, the term removal is related to the process of moving a specific piece of litigation to the bankruptcy court or to the United States District Court from another court. Removal relates to the automatic stay in a way, as litigation that the debtor is subject to becomes part of the bankruptcy proceeding once the official bankruptcy petition has been filed. Lawsuits started in one court may go through the process of removal from the specific court in order to be managed in bankruptcy court or in the United States District Court as part of the debtor's ongoing bankruptcy proceeding. In terms of litigation, certain judgments cannot be dismissed in a bankruptcy proceeding, such a criminal fines or drunk driving fines or judgments related to domestic support obligations.

Fast Facts

  • In 2005, Chapter 12 bankruptcy filings increased 53%.
  • Bankruptcies have risen 79% from 2007.

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