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Bankruptcy Venue Reform: Limiting Forum Shopping for Fairness

New rules aim to prevent companies from filing for bankruptcy in courts far from their main operations. This change is intended to make it easier for small businesses, employees, and creditors to participate in bankruptcy proceedings, addressing issues caused by current practices. The goal is to enhance fairness and public confidence in the bankruptcy system.
Key points
Companies will generally be required to file for bankruptcy in the district where their principal place of business or principal assets are located.
The new rules will make it harder for companies to change their location shortly before filing for bankruptcy to choose a more favorable court.
This reform seeks to ensure that stakeholders like employees and local creditors can more easily engage in bankruptcy cases affecting them.
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Status:
Expired
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Additional Information
Print number: 117_HR_4193
Sponsor: Rep. Lofgren, Zoe [D-CA-19]
Process start date: 2021-06-28
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Bankruptcy Venue Reform Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_4193.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-06-28.

What are the main provisions?

Key points include:

  • Companies will generally be required to file for bankruptcy in the district where their principal place of business or principal assets are located.
  • The new rules will make it harder for companies to change their location shortly before filing for bankruptcy to choose a more favorable court.
  • This reform seeks to ensure that stakeholders like employees and local creditors can more easily engage in bankruptcy cases affecting them.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Lofgren, Zoe [D-CA-19].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Courts and Law Economy