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April 30, 2026

Arbitration and Bankruptcy: Can a Debtor that is Party to an Arbitration Agreement Lack Authority to Arbitrate Core Bankruptcy Claims?

The Bankruptcy Strategist

The Federal Arbitration Act was enacted to require courts to enforce parties’ agreements to arbitrate disputes. More recently, the Supreme Court has said that “[t]he federal policy is about treating arbitration contacts like all others, not about fostering arbitration.” In bankruptcy cases, a recurring issue that litigants raise is whether a conflict exists between the FAA and the requirements of the U.S. Bankruptcy Code.

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