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Arbitration and Bankruptcy: Can a Debtor that is Party to an Arbitration Agreement Lack Authority to Arbitrate Core Bankruptcy Claims?

The Federal Arbitration Act was enacted to require courts to enforce parties’ agreements to arbitrate disputes. More recently, the Supreme Court has said that “[t]he federal policy is about treating arbitration contacts like all others, not about fostering arbitration.” In bankruptcy cases, a recurring issue that litigants raise is whether a conflict exists between the FAA and the requirements of the U.S. Bankruptcy Code.

5 minute read April 30, 2026 at 11:07 PM
By
Daniel A. Lowenthal
Arbitration and Bankruptcy: Can a Debtor that is Party to an Arbitration Agreement Lack Authority to Arbitrate Core Bankruptcy Claims?

The Federal Arbitration Act (FAA) was enacted to require courts to enforce parties’ agreements to arbitrate disputes. Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213 (1985). More recently, the Supreme Court has said that “[t]he federal policy is about treating arbitration contacts like all others, not about fostering arbitration.”

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