ABI Supports Judicial Pay Raise Legislation
Contact: John Hartgen
July 31, 2007, Alexandria,
Va. —The American Bankruptcy Institute (
The need for a salary adjustment in the bankruptcy system is particularly acute, as bankruptcy judge salaries are set by statue at 92 percent of the district courts, despite the fact that bankruptcy judges handle some of the largest and most complex cases in the federal system. For example, 32 new public company bankruptcies this year with over $28 billion in pre-petition assets at stake are winding their way through the bankruptcy courts.
“The rights of millions
of employees, retirees and other stakeholders are at issue in these
cases, and so retaining and attracting the top members of the legal
profession is vital to the administration of the bankruptcy
Chief Justice John Roberts has stated that over the past six years 38 judges have left the federal bench due to the salary issue, and it is projected that 68 judges will have left the bench by 2009. The legislation would help to remedy the loss of bankruptcy judges to private practice. It would also entice qualified candidates to apply for more than a dozen current bankruptcy judicial vacancies nationwide, many of which have gone unfilled for a number of years.