Legal Definitions - noncore proceeding

Noncore Proceeding

A noncore proceeding is a legal case that involves a claim that will affect the administration of a debtor's estate, but does not arise under bankruptcy law and could be adjudicated in a state court.

For example, if a debtor is involved in a tort action with a third party, it would be considered a noncore proceeding. This type of case must be adjudicated in federal district court unless the parties consent to bankruptcy-court jurisdiction or unless the district court refers the matter to the bankruptcy court or to state court.

Noncore proceedings are also known as related proceedings.

• A debtor is involved in a personal injury lawsuit with a third party.
• A debtor is involved in a breach of contract lawsuit with a third party.

These examples illustrate noncore proceedings because they involve claims that will affect the administration of the debtor's estate, but do not arise under bankruptcy law and could be adjudicated in a state court.