Welcome to CLLA’s Bankruptcy Venue Reform Workroom

The CLLA supports Bankruptcy Venue Reform because it constructively attempts to rebalance the interests of all parties in bankruptcy by making sure that the bankruptcy reorganization process remains within the regions and communities that have the most significant vested interest in the outcome. To learn more about the CLLA’s position on this issue, please read our Position Papers.  The CLLA publishes an annual Position Paper, or White Paper, on the issue of Venue Reform.  These papers are then used as a platform for our members when they attend our annual Hill Day in Washington DC.  This event provides the opportunity for the League to present its position on Venue and other issues to the legislators and other leaders in Washington.  To get involved or for more information on Hill Day, Venue Reform, or other League activities, please contact us.

Reps. Zoe Lofgren (D-CA) and Jim Sensenbrenner (R-WI) Introduce H.R. 4421, the Bankruptcy Venue Reform Act of 2019

Two of the Commercial Law League of America’s (“CLLA”) friends in Congress, Reps. Zoe Lofgren (D-CA) and Jim Sensenbrenner (R-WI), introduced H.R. 4421, bipartisan, common-sense legislation in the U.S. House of Representatives to reform and strengthen the U.S. Bankruptcy Code. Reps. Charlie Christ (D-FL), and Greg Steube (R-FL) have also signed on as original cosponsors. Simply put, our country’s Bankruptcy Code allows companies to flee their communities, employees, and local creditors to reorganize their finances in another state that might be more sympathetic to their interests.  A copy of H.R. 4421 is available. Click Here.

The CLLA posted a press release about the introduction of H.R. 4421. Click Here.

Bankruptcy Venue Reform Bill Introduced in Congress.
Commercial Law League of America and the Venue Group Lead National Effort to Amend the Bankruptcy Code

On January 8, 2018, Senators John Cornyn (R-TX) and Elizabeth Warren (D-MA) introduced a bill (S. 2282) that would rebalance how Chapter 11 bankruptcy cases are distributed throughout the country, by eliminating the state of incorporation for commencing a bankruptcy case, and instead, require corporate debtors to file where they have a principal place of business or principal assets are located.  In addition, the Bill greatly restricts the related-affiliate option that was used by large corporations.  Currently, many corporate debtors forum shop their cases to file in remote forums like Delaware or the Southern District of New York.  It is believed that the change in law would be favorable to trade creditors, landlords, and local business interests by ensuring that local debtors are reorganized in local courts.  It is believed that local judges, lawyers, and bankruptcy professionals are in the best position to help apply and enforce rights and remedies of all parties involved.

The CLLA has been actively working on the venue issue since 2004. A copy of S. 2282 is available click here.

Economic Impact Template
This paper shows the economic impact of venue issue on California.  
Click to Download and use as a template for your state. 

Remote Bankruptcy Filing Problems & Supporting Organizations
Click here to view examples of remote bankruptcy filing problems and a partial list of supporting organizations.

Bankruptcy Venue Reform Primer & Sources
Click here to view the 2015 Bankruptcy Venue reform article and related resources

Need More Information or Have Questions?

Please, contact Peter Califano at pcalifano@cwclaw.com