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Bankruptcy Venue Reform: Ending Forum Shopping for Companies

New rules aim to limit companies' ability to choose distant bankruptcy courts, which previously hindered participation from employees, small businesses, and creditors. This means bankruptcy cases will be handled closer to the company's actual operations, making it easier for citizens to follow and participate in processes that impact their lives and local economies.
Key points
Companies will be required to file for bankruptcy in courts closer to their main business location or where their primary assets are, rather than choosing a more convenient court.
The changes are designed to prevent large bankruptcy cases from concentrating in a few courts, which made it difficult for local communities and small businesses to protect their interests.
Clear rules have been introduced regarding where a company can file for bankruptcy to increase fairness and transparency in the system.
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Expired
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Additional Information
Print number: 118_HR_1017
Sponsor: Rep. Lofgren, Zoe [D-CA-18]
Process start date: 2023-02-14
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Bankruptcy Venue Reform Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_1017.

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 2023-02-14.

What are the main provisions?

Key points include:

  • Companies will be required to file for bankruptcy in courts closer to their main business location or where their primary assets are, rather than choosing a more convenient court.
  • The changes are designed to prevent large bankruptcy cases from concentrating in a few courts, which made it difficult for local communities and small businesses to protect their interests.
  • Clear rules have been introduced regarding where a company can file for bankruptcy to increase fairness and transparency in the system.
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-18].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on the Judiciary.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-24.

CATEGORIES

Courts and Law Economy