Legal Definitions - core proceeding

A core proceeding is a legal case that involves claims that significantly impact the relationship between a debtor and creditor. These claims may include actions to recover preferential transfers, which are transfers made by the debtor to a creditor before filing for bankruptcy. In a core proceeding, the bankruptcy court is responsible for conducting the trial or hearing and issuing a final judgment.

Additionally, a core proceeding may involve subject matter that falls within the scope of federal bankruptcy law and the management of the debtor's estate. This means that a federal bankruptcy court may hear cases that have an independent basis for subject-matter jurisdiction, such as a federal question.

Examples of core proceedings include:

• An action to recover a preferential transfer made by the debtor to a creditor before filing for bankruptcy.
• A dispute over the validity or priority of a lien on the debtor's property.
• An objection to the discharge of a debt owed by the debtor.

These examples illustrate how a core proceeding involves claims that significantly impact the debtor-creditor relationship and fall within the scope of federal bankruptcy law. In each case, the bankruptcy court would be responsible for conducting the trial or hearing and issuing a final judgment.