Not really sure what you're talking about. There's no such thing as a "local district court" in New York. State courts are called supreme courts or county courts and have nothing to do with bankruptcy matters. On the federal level, the State of New York is divided into four districts. The Eastern District covers all of Long Island. The Southern District covers NYC (other than Brooklyn and Queens) and about half a dozen counties just north of NYC. The Western District covers that part of the state west of Ithaca (roughly). The Northern District covers the rest of it. Bankruptcy court decisions are generally appealed to district court (e.g., if you don't like a decision of the U.S. Bankruptcy Court for the Western District of New York, you'd generally appeal it to the U.S. District Court for the Western District of New York). You would not file a separate declaratory judgment action because you don't like a BK court ruling.

