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BankruptcyFeaturesLegislationLitigationThe Bankruptcy Strategist

Bankruptcy Venue Reform Bill Introduced

By Adam Schlagman

On Jan 8, 2018, Senators John Cornyn (R-TX) and Elizabeth Warren (D-MA) introduced the Bankruptcy Venue Reform Act of 2018, which is designed to prevent forum shopping in Chapter 11 bankruptcy cases, a practice that has resulted in a concentration of bankruptcy cases in a few districts.

The stated purpose of the bill is to force individual debtors and corporations to file Chapter 11 bankruptcy petitions in their true home districts to allow small businesses, employees, retirees, creditors, and other stakeholders to fully participate in these cases.

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