Bankruptcy Venue Bills Win Support From 43 Attorneys General

Nov. 10, 2021, 7:28 PM UTC

Federal legislation that would crack down on forum shopping in bankruptcy gained the backing of a majority of attorneys general, who argue it would help them guard consumers’ interests.

Tuesday’s letter from the National Association of Attorneys General urged leaders in the House and Senate to pass the Bankruptcy Venue Reform Act (H.R. 4193/S. 2827). The nearly identical bipartisan measures would require Chapter 11 proceedings to take place where the corporate debtor has its principal place of business or principal assets.

The bills are awaiting committee action in their respective chambers.

“This ability to control the ...

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