Contact: John Hartgen
703-739-0800
JUDICIAL PAY RAISE LEGISLATION
July 31, 2007, Alexandria,
Va. —The American Bankruptcy Institute (
w:st='on'>ABI) today voiced its support of S. 1638, the
“Federal Judicial Salary Restoration Act of 2007,” to adjust
the salaries of Federal judges, including
w:st='on'>
w:st='on'>U.S.
nonpartisan organization that does not maintain a legislative advocacy
agenda, it has consistently supported legislation that advances the
administration of justice in the bankruptcy system.
w:st='on'>ABI
Judiciary Committee endorsing S. 1638, stating that the bill meets the
organization’s criteria for support given the serious problem that
the loss of experienced judges poses to the bankruptcy system.
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
system,”
John D. Penn wrote in the letter. “The bankruptcy courts
have lost some of our most experienced and skilled judges because
judicial salaries have eroded so dramatically from what is available in
private practices.”
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.
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size='3'>ABI
nonpartisan organization dedicated to research and education on matters
related to insolvency.
was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The
w:st='on'>ABI
attorneys, accountants, bankers, judges, professors, lenders, turnaround
specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
For additional conference information, visit
title='http://www.abiworld.org/conferences.html'
href='http://www.abiworld.org/conferences.html'>
color='#0000ff'>http://www.abiworld.org/conferences.html.