Are US Bankruptcy courts courts of equity?

Yes. Bankruptcy has historically been considered an equitable matter, and bankruptcy courts are considered "courts of equity" and exercise equitable powers under Section 105 of the U.S. Bankruptcy Code. The U.S. Courts were created under Article III of the U.S. Constitution to administer justice fairly and impartially, within the jurisdiction established by the Constitution and Congress. The US Bankruptcy Courts are courts created under Article I of the U.S. Constitution, and function as "units" of the U.S. District Courts and have subject-matter jurisdiction over bankruptcy cases.

The U.S. Bankruptcy Courts are Courts of Equity and they are a unit of the U.S. District Court. If one is unhappy with a decision of the U.S. Bankruptcy Court, the decision can be appealed to the U.S. District Court. The Bankruptcy Courts try to achieve a fair result in Bankruptcy cases that is fair according to the bankruptcy code. The Bankruptcy laws were created to try to help debtors and the Courts function in that way subject to the law. I have found that debtors get a fair shake and get fairer treatment than they sometimes get in the state courts.

I concur with the recommendations of my distinguished colleagues. The Bankruptcy Courts are in fact Courts of Equity. The Bankruptcy Court is a lower federal court than the US District Court and it has more limited jurisdiction than the District Court. I hope this helps. Good luck.

The answers given provide you with how and why the bankruptcy court is given the authority to follow equitable principals. Per numerous Supreme Court decisions, the bankruptcy court is given the power to use equity when the bankruptcy code does not have a provision that the bankruptcy court must follow. To answer your question about equity, an action at law is an action generally a suit for money damages such as a tort (personal injury or medical malpractice action) or breach of contract action. Also, criminal proceedings are actions at law. An action in equity seeks a remedy when there is no available remedy at law. For instance, if money damages will resolve the issue. An example of an equitable action is specific performance in a sale of property or a house. In this action, the plaintiff will ask the court to make the owner go through with the purchase because houses or property are unique. Family law issues are normally consider to be equity. For example, custody of a child is normally based upon the best interests of the child.