A Democratic bill with 1 Republican cosponsor · See the cosponsor
Last activity — Referred to the House Committee on the Judiciary.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Bankruptcy Venue Reform Act aims to modify venue requirements for bankruptcy proceedings. It specifically targets the practice of "forum shopping," where companies file for bankruptcy outside of their home states. The bill seeks to reduce the concentration of cases in a limited number of districts. By doing so, it intends to strengthen the integrity and fairness of the bankruptcy system. The act amends title 28, United States Code, to redefine how principal places of business and assets are determined for venue purposes.
Yes· 3 of 5
- Scored +4
Does this make it easier to run a small business?
The bill aims to prevent forum shopping which prevents small businesses from fully participating in bankruptcy cases affecting their local economies.
- Scored +3
Would business owners be better off under this?
The bill intends to create a more predictable and fair bankruptcy venue system for businesses and their stakeholders.
- Scored +3
Would retired people be better off under this?
The bill seeks to ensure retirees can fully participate in bankruptcy cases that impact their lives by reducing venue shopping.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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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))
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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))
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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))
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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))
Potential Negative Impacts for People
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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))
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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))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — The bill intends to create a more predictable and fair bankruptcy venue system for businesses and their stakeholders. Would retired people be better off under this? — The bill seeks to ensure retirees can fully participate in bankruptcy cases that impact their lives by reducing venue shopping. Would households on low incomes be better off under this? — Increased participation for stakeholders like employees and creditors can help protect those affected by bankruptcy proceedings.
- Economy And Finance
- Does this make it easier to run a small business? — The bill aims to prevent forum shopping which prevents small businesses from fully participating in bankruptcy cases affecting their local economies.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — By increasing participation for stakeholders like creditors and employees, the bill seeks to protect local economic impacts that affect livelihoods.
- 3/26/2026
- Referred to the House Committee on the Judiciary.
- 1 Cosponsor added.
- Introduced in House
Ben ClineRepublican · Virginia