Bankruptcy Venue Reform Act

Bankruptcy Venue Reform Act

This bill limits where a non-individual debtor (e.g., a corporate debtor) may file for bankruptcy to prevent forum shopping.

Specifically, these debtors must file in the district court where their principal place of business or principal assets are located. Corporate debtors may also file in a district where there is a pending bankruptcy case concerning an affiliate that has a certain level of control over or ownership of the debtor (e.g., if the affiliate is a controlling shareholder of the debtor), if that pending case is in a proper venue under this bill. Under current law, these debtors may also file where they are domiciled (i.e., incorporated) or where there is a pending bankruptcy case concerning any affiliate, general partner, or partnership of the debtor.

For corporate debtors that are issuers of securities, their principal place of business is defined in the bill as the address of the entity's principal executive office as provided in specified Securities and Exchange Commission filings.