Bankruptcy Venue Reform Act

Increased Participation for Stakeholders: Reducing forum shopping is intended to prevent small businesses, employees, retirees, and creditors from being prevented from fully participating in bankruptcy cases that affect their lives and local economies. (Section 2(a)(5))

Strengthened System Integrity: The bill aims to build public confidence and ensure fairness in the bankruptcy system by reducing the concentration of cases in specific districts. (Section 2(a)(6))

Local Judicial Contribution: The changes are intended to allow district courts in various jurisdictions the opportunity to contribute to the development of bankruptcy law. (Section 2(a)(5)(B))

Support for Government Attorneys: The bill allows any attorney representing a governmental unit to appear and intervene in bankruptcy proceedings without charge and without meeting local requirements for local counsel. (Section 3(1)(e))

Burden of Proof on Entities: If an entity objects to a venue or requests a change, the entity that starts the case must prove by clear and convincing evidence that the venue is proper. (Section 3(d))

Mandatory Dismissal or Transfer: If a case is filed in a district that is considered improper under the new rules, the court must immediately dismiss the case or transfer it to a proper district if it is in the interest of justice. (Section 3(2)(b))