What does Preamble of Bankruptcy Venue Reform Act do?

This bill aims to amend title 28 of the United States Code The amendment targets venue requirements for bankruptcy proceedings

What does SHORT TITLE. of Bankruptcy Venue Reform Act do?

This bill is formally titled the Bankruptcy Venue Reform Act.

What does FINDINGS AND PURPOSE. of Bankruptcy Venue Reform Act do?

This section establishes findings related to bankruptcy venue options under Chapter 11 of Title 11, United States Code. Congress notes that bankruptcy law allows entities to file in various districts, including where they are incorporated, have their principal place of business, or where an affiliate has filed. The wide range of venue options has reportedly led to companies filing for bankruptcy outside of their home states, a practice known as 'forum shopping'. Forum shopping has resulted in a concentration of bankruptcy cases in a limited number of districts. Congress finds that forum shopping negatively impacts stakeholders and limits the opportunity for district courts to contribute to bankruptcy law. The stated purpose of the Act is to prevent forum shopping in Chapter 11 bankruptcy cases.

What does VENUE OF CASES UNDER TITLE 11. of Bankruptcy Venue Reform Act do?

This section amends Title 28, United States Code, specifically sections 1408 and 1412, to address venue of cases under Title 11 (bankruptcy). For entities subject to SEC reporting requirements, the 'principal place of business' is defined as the address of the principal executive office as stated in their last annual report. Venue for a Title 11 case generally lies in the district where an individual's domicile, residence, or principal assets are located, or where an entity's principal place of business or principal assets are located, for a significant portion of the 180 days preceding the case commencement. Changes in ownership, control, or the location of principal assets within one year before case commencement are disregarded for venue purposes. The entity commencing the case bears the burden of proving proper venue with 'clear and convincing evidence'. District courts may transfer cases for the 'interest of justice' or 'convenience of the parties'. If a case is filed in an improper district, the court must dismiss it or transfer it to a proper district.

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Bankruptcy Venue Reform Act

Last updated: 3/26/2026 · Introduced: 3/26/2026

Author: Zoe Lofgren (D-CA)

TL;DR (AI)

This bill restricts forum shopping in Chapter 11 bankruptcy cases by clarifying venue requirements.
For SEC-reporting companies, the 'principal place of business' is defined as the address of the principal executive office listed in their annual report.
The bill establishes a burden of proof for the entity filing bankruptcy to demonstrate proper venue and allows courts to dismiss or transfer cases filed in improper districts.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

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