arrow_back Back to App

Bankruptcy Venue Reform: Where Companies Can File for Bankruptcy

This act changes the rules for where companies can file for bankruptcy. It aims to prevent companies from choosing distant courts, which makes it difficult for small businesses, employees, and creditors to participate. The goal is to ensure bankruptcy cases are handled closer to the company's actual operations, making it easier for all stakeholders to follow and engage in the process.
Key points
Companies will generally need to file for bankruptcy where their main business or assets are located, not just where they are incorporated.
The law makes it harder for companies to intentionally change their location shortly before filing for bankruptcy to pick a more favorable court.
Employees, creditors, and small businesses will have easier access to information and participation in bankruptcy cases, as cases will be closer to their homes or operations.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_S_2827
Sponsor: Sen. Cornyn, John [R-TX]
Process start date: 2021-09-23
Lustra uses Artificial Intelligence. Verify details in source documents.
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_S_2827.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-09-23.

What are the main provisions?

Key points include:

  • Companies will generally need to file for bankruptcy where their main business or assets are located, not just where they are incorporated.
  • The law makes it harder for companies to intentionally change their location shortly before filing for bankruptcy to pick a more favorable court.
  • Employees, creditors, and small businesses will have easier access to information and participation in bankruptcy cases, as cases will be closer to their homes or operations.
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 Sen. Cornyn, John [R-TX].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Courts and Law Economy