Bankruptcy\u27s Gray Area: Are Bankruptcy Courts Courts of the United States ?

This Note seeks to evaluate the circuit split regarding the status of bankruptcy courts and propose a solution to the problem through an efficiency-based lens. After laying out a brief history of bankruptcy in the United States and the current bankruptcy system and outlining the circuit split within the courts of appeals as to the proper definition of “courts of the United States,” this Note will analyze the statutory language, the United States Code, and the relevant historical context to determine if the bankruptcy courts qualify as “courts of the United States.” This Note will argues that the bankruptcy courts are “courts of the United States.” This Note will conclude by discussing the policy rationale supporting this legal conclusion from an efficiency-based lens. The Note suggests that Congress or the Supreme Court should intervene and legitimize the bankruptcy courts as “courts of the United States.” This conclusion is reached by analyzing the United States Code in a consistent and uniform manner with common tools of statutory interpretation—with attention paid to history, Congressional purpose, and general principles of efficiency