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.

10 minute read January 01, 2026 at 12:11 AM
By
Michael L. Cook
Fifth Circuit Trashes Bankruptcy Jurisdictional Overreach

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.

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