A “bankruptcy court lacked jurisdiction to decide a state law contract dispute that arose eighteen months after the debtor’s reorganization plan had been confirmed and consummated,” held the Fifth Circuit on November 13, 2025.
Fifth Circuit Trashes Bankruptcy Jurisdictional Overreach
Sanchez shows the limits of bankruptcy jurisdiction in concrete terms. In the court’s hard-hitting analysis, the decision should at least convince bankruptcy courts to avoid hearing most post-confirmation and unrelated third-party disputes.

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