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Fed. R. Bankr. P. 7023.1

Not legal advice. Verify against official sources before relying on this text in any legal matter.

Rule 7023.1 Derivative Actions

ADVERSARY PROCEEDINGS

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Rule Text

Fed. R. Civ. P. 23.1 applies in an adversary proceeding.

Plain-English Summary (for reference only — not a substitute for the rule text above)

When someone wants to file a lawsuit on behalf of a company or organization in a bankruptcy case, they have to follow specific rules. These rules come from Federal Rule of Civil Procedure 23.1, which now applies to adversary proceedings in bankruptcy court.

The main thing this means is that if you want to sue on behalf of a corporation or similar group, your complaint must include certain details. You need to explain why you have the right to bring the case, what steps you took to get the company's leadership to act first, and why those efforts failed or why you did not have to try.

A judge must also approve any settlement or dismissal of this type of case. This protects the company and its members from backroom deals that might not be in their best interest.

Summary generated March 09, 2026

Committee Notes

Committee Notes on Rules—2008 Amendment

The rule is amended to conform to the changes made to the Federal Rules of Civil Procedure through the restyling of those rules effective on December 1, 2007.

Committee Notes on Rules—2024 Amendment

The language of Rule 7023.1 has been amended as part of the general restyling of the Bankruptcy Rules to make them more easily understood and to make style and terminology consistent throughout the rules. These changes are intended to be stylistic only.

References in Text

The Federal Rules of Civil Procedure, referred to in text, are set out in the Appendix to Title 28, Judiciary and Judicial Procedure.

(As amended Apr. 23, 2008, eff. Dec. 1, 2008; Apr. 2, 2024, eff. Dec. 1, 2024.)

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