VENUE REFORM WORKROOM

CLLA Bankruptcy Section

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VENUE REFORM WORKROOM

CLLA Bankruptcy Section

Find A CLLA Attorney

Find A CLLA Certified Agency

Find A CLLA Agency

Find A CLLA Professional

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.

September 27, 2023
23-124 Amicus Brief (Download)

Commercial Law League of America and the Venue Reform Group Files Amicus Brief in Purdue Pharma Supreme Court Bankruptcy Appeal, Advocating for Venue Reform
Throughout its 129 years of existence, the Commercial Law League of America (CLLA) has consistently promoted and supported the fair, equitable, and efficient administration of collection and bankruptcy laws for all parties-in-interest, which includes advocating for bankruptcy venue reform.  On September 27, 2023, the CLLA, along with the National Bankruptcy Venue Reform Committee, filed an Amicus Brief with the Supreme Court of the United States in the appeal of the Purdue Pharma case in which the 2nd Circuit Court of Appeals upheld the use of non-consensual third-party releases.  Although the CLLA did not take a position with regard to the main issue for the Supreme Court to determine, which is whether non-consensual third-party releases can be approved as part of a Chapter 11 plan of reorganization, the CLLA advocated for venue reform, noting how the Purdue case itself had been shopped and the systemic dangers of forum shopping in Chapter 11 bankruptcy cases.

The CLLA noted that H.R. 1017, presently pending in the House of Representatives, would require that companies file for bankruptcy in the jurisdiction where their principal place of business or principal assets are located.  In supporting that bill, the CLLA noted in the Amicus Brief that “While the issue before the Court is not about venue shopping, it is part of the fabric of how this case came to be before the Court.  The Court should ensure that its ruling on the issue before the Court—nonconsensual third-party releases—does not further exacerbate the deleterious use of venue shopping in bankruptcy cases”.  The Amicus Brief can be found here: DOWNLOAD PDF

Check out these recent articles:

It is Time to Change Bankruptcy Forum Laws

By Christopher D. Hughes and Peter Califano

Why Bankruptcy Venue Reform Now?

By Laura N. Coordes and Joan N. Feeney

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. (Download).

The CLLA posted a press release about the introduction of H.R. 4421. (Download)

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 (Download).

Bankruptcy Section

The Bankruptcy Section (BKS) was founded to promote excellence in the practice of bankruptcy and insolvency law. Its members are amongst the highest regarded bankruptcy attorneys in the United States.

READ MORE

Creditors' Rights Section

The Creditors’ Rights Section (CRS) was founded to promote excellence amongst those professionals who represent creditors in the field of commercial collections and receivables recovery and provide a high level of education to those professionals.

READ MORE

Agency Members Section

The Agency Members Section (AMS) gives a voice for all the CLLA Agency Members to share ideas and thoughts on national education, legislative advocacy, and how best to serve the collection agency constituency.

READ MORE

Young Members Section

The Young Members’ Section (YMS) is mandated to engage and retain members and often provides leadership opportunities for new members of the League as well as for new professionals in the industry.

READ MORE

Association Of Law List Publishers

The Association of Law List Publishers (ALLP), established in 1935, is an organization of the publishers of reference directories which contain names of lawyers handling commercial and consumer debt recovery, bankruptcy and creditors’ rights law matters. The members of the Association continually work to promote the Commercial Law League of America, the triadic system and to enhance the creditors’ rights practices of their listees.

READ MORE

REFER A MEMBER

If you are a member, receive a $50 Visa Gift Card for every member you refer who joins! CLICK HERE to refer a new member.

ADDITIONAL INFORMATION:

Position Papers

Venue Reform Primer

Candice L. Kline, Esq.

Read Candice’s article, LTL Management and the Third Circuit: Financial Distress Required for Good Faith Filings at the CLLA Bankruptcy Blog.

Jeffrey N. Schatzman, Esq.

Read Jeffrey’s article Florida Supreme Court Confirms Zero-Tolerance For Misleading UCC Filings at the CLLA Bankruptcy Blog.

Peter J. Klock, II

Read Peter’s article, Evaluating Fraudulent Transfer Liability for Pass-Through Tax Distributions – Start with the F-Squared Opinion at the CLLA Bankruptcy Blog.

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 (download) to view examples of remote bankruptcy filing problems and a partial list of supporting organizations.

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

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.

September 27, 2023
23-124 Amicus Brief (Download)

Commercial Law League of America and the Venue Reform Group Files Amicus Brief in Purdue Pharma Supreme Court Bankruptcy Appeal, Advocating for Venue Reform
Throughout its 129 years of existence, the Commercial Law League of America (CLLA) has consistently promoted and supported the fair, equitable, and efficient administration of collection and bankruptcy laws for all parties-in-interest, which includes advocating for bankruptcy venue reform.  On September 27, 2023, the CLLA, along with the National Bankruptcy Venue Reform Committee, filed an Amicus Brief with the Supreme Court of the United States in the appeal of the Purdue Pharma case in which the 2nd Circuit Court of Appeals upheld the use of non-consensual third-party releases.  Although the CLLA did not take a position with regard to the main issue for the Supreme Court to determine, which is whether non-consensual third-party releases can be approved as part of a Chapter 11 plan of reorganization, the CLLA advocated for venue reform, noting how the Purdue case itself had been shopped and the systemic dangers of forum shopping in Chapter 11 bankruptcy cases.

The CLLA noted that H.R. 1017, presently pending in the House of Representatives, would require that companies file for bankruptcy in the jurisdiction where their principal place of business or principal assets are located.  In supporting that bill, the CLLA noted in the Amicus Brief that “While the issue before the Court is not about venue shopping, it is part of the fabric of how this case came to be before the Court.  The Court should ensure that its ruling on the issue before the Court—nonconsensual third-party releases—does not further exacerbate the deleterious use of venue shopping in bankruptcy cases”.  The Amicus Brief can be found here: DOWNLOAD PDF

Check out these recent articles:

It is Time to Change Bankruptcy Forum Laws

By Christopher D. Hughes and Peter Califano

Why Bankruptcy Venue Reform Now?

By Laura N. Coordes and Joan N. Feeney

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. (Download).

The CLLA posted a press release about the introduction of H.R. 4421. (Download)

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 (Download).

Bankruptcy Section

The Bankruptcy Section (BKS) was founded to promote excellence in the practice of bankruptcy and insolvency law. Its members are amongst the highest regarded bankruptcy attorneys in the United States.

READ MORE

Creditors' Rights Section

The Creditors’ Rights Section (CRS) was founded to promote excellence amongst those professionals who represent creditors in the field of commercial collections and receivables recovery and provide a high level of education to those professionals.

READ MORE

Agency Members Section

The Agency Members Section (AMS) gives a voice for all the CLLA Agency Members to share ideas and thoughts on national education, legislative advocacy, and how best to serve the collection agency constituency.

READ MORE

Young Members Section

The Young Members’ Section (YMS) is mandated to engage and retain members and often provides leadership opportunities for new members of the League as well as for new professionals in the industry.

READ MORE

Association Of Law List Publishers

The Association of Law List Publishers (ALLP), established in 1935, is an organization of the publishers of reference directories which contain names of lawyers handling commercial and consumer debt recovery, bankruptcy and creditors’ rights law matters. The members of the Association continually work to promote the Commercial Law League of America, the triadic system and to enhance the creditors’ rights practices of their listees.

READ MORE

REFER A MEMBER

If you are a member, receive a $50 Visa Gift Card for every member you refer who joins! CLICK HERE to refer a new member.

ADDITIONAL INFORMATION:

Position Papers

Venue Reform Primer

Candice L. Kline, Esq.

Read Candice’s article, LTL Management and the Third Circuit: Financial Distress Required for Good Faith Filings at the CLLA Bankruptcy Blog.

Jeffrey N. Schatzman, Esq.

Read Jeffrey’s article Florida Supreme Court Confirms Zero-Tolerance For Misleading UCC Filings at the CLLA Bankruptcy Blog.

Peter J. Klock, II

Read Peter’s article, Evaluating Fraudulent Transfer Liability for Pass-Through Tax Distributions – Start with the F-Squared Opinion at the CLLA Bankruptcy Blog.

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 (download) to view examples of remote bankruptcy filing problems and a partial list of supporting organizations.

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

Become A Member

Membership provides an opportunity to connect with professionals in your field and promote your services to other industry members.

Being engaged, involved, active, and present makes all the difference. Network and make new business contacts. Keep your CLE requirements up-to-date and find out about pending legislation that could affect your daily work, before it goes into effect by joining the CLLA.

CLLA ZOOM Discussions And Webinars

CLLA’s recorded Zoom Discussions and Webinars are available for viewing at your convenience. 

130th CLLA National Convention

Join us for this annual event, the largest gathering of the year! Meet with us for valuable education and networking opportunities.

Hill Day 2024!

A great opportunity to promote CLLA in DC and work on behalf of the issues that affect you. We hope you can join us!

CLLA Southern Region Conference

Thank You to attendees, speakers and sponsors. Click for photos!

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+312 240 1400

info@clla.org

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