The Bankruptcy Venue Debate: A Never-Ending Story

Law360, New York (July 14, 2015, 4:29 PM EDT) -- The venue provisions governing bankruptcy cases have long been the subject of debate. Many practitioners argue that current law gives a prospective debtor too much leeway in deciding where it may file bankruptcy, thereby promoting forum shopping. Others counter that existing venue law works, allowing the debtor the flexibility to choose a venue that provides it with the best opportunity to reorganize and maximize estate value. The argument is peculiar in that it lies dormant for long stretches of time, periodically giving rise to intense debate. Interestingly, the substance of the argument has not changed dramatically in nearly 40 years....

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