Interest Groups

Bankruptcy Venue Reform - Commercial & Bankruptcy Law News

Get the news you want the way you want it: click the RSS button in the right corner to add this feed to your RSS reader, or click here to subscribe to this content. By subscribing, you’ll find this news on your Member Account page, and the latest articles will be emailed to you in your customized IndyBar E-Bulletin e-newsletter.

Commercial & Bankruptcy Law News


Posted on: Mar 8, 2018

On January 8, 2018 Senators John Cornyn (R-TX) and Elizabeth Warren (D-MA) introduced a bipartisan bankruptcy venue reform bill as S. 2282 entitled the Bankruptcy Venue Reform Act of 2018 to rebalance where commercial Chapter 11 bankruptcy cases are commenced. The proposed law eliminates the place of incorporation in favor of filing where the debtor's principal place of business or principal assets are located. It will also eliminate the affiliate-filing loophole. The result of this effort will make it more likely that local bankruptcy cases will be decided at home.

Retired Bankruptcy Judge Steven Rhodes (Bankr. E. D. Michigan) commented in the Wall Street Journal that the current venue law is "the single most significant source of injustice in chapter 11 bankruptcy cases." The National Association of Credit Managers recently asserted that venue shopping in bankruptcy cases "creates significant obstacles for trade creditors .... and increases the cost of participation." S. 2282 will put an end to the rampant forum shopping permitted under the current statutory regime.

Read more.

If you would like to submit content or write an article for the Commercial & Bankruptcy Law Section, please email Kara Sikorski at ksikorski@indybar.org.

DID YOU KNOW?

Indianapolis Bar Association (IndyBar) est. 1878 | 4,536 Members (as of 2.11.21)