Two members of Congress have introduced a bipartisan bill to end what they call "corporate bankruptcy forum shopping."
Reps. Ken Buck (R-Colorado) and Zoe Lofgren (D-Calif.) introduced the Bankruptcy Venue Reform Act of 2021.
The legislation would require corporations to pursue Chapter 11 bankruptcy proceedings where their principal place of business is or where their principal assets are.
Currently, say the representatives, corporations can "venue shop" to choose a court that has issued "lenient rulings in similar cases."
This will eliminate companies’ ability to tilt the scale of justice and ensure the case is heard in a court familiar with all the affected stakeholders.Rep. Ken Buck (R-Colorado)
"It is simply unfair that corporations can game the bankruptcy system by choosing a distant court where there is a cottage industry to advantage their interests. Justice is best served when corporate bankruptcies are adjudicated locally, with convenient court access for employees, retirees, and local creditors and a judge who knows the affected community,” said Lofgren.
You can read the Bankruptcy Venue Reform Act of 2021 here.
To improve this bill further they need to prevent things like when the Sackler's bleed all those billions off their companies and then declared bankruptcy just so they can keep their Oxycontin fortunes!
Bill Andrews says
This article information Forum on this subject a Huge speed bump in the United States Supreme Court's system ??? Example : If the United States Bankruptcy Court's currently do not allow the American people to file Bankruptcy on Medical Bill's.. Than How did Purdue pharma and others get to file bankruptcy after they help cause all kinds of Medical problems with opioid's that resulted a flood of medical problems to Doctors and Hospitals across the United States..? Seam's like to me the American people under a New Medical Care hardship act Bill should be allowed in future to, file Bankruptcy on preditory Medical Bill's. ??? Think for yourselves ? If the pharma companies was allowed to file a hardship medical Bankruptcy act, Why can't You in constitutional fair act rights ??? And this is only the half of future medical problem's and future bill acts ? What about the Covid-long Haulers ??? It's not a Democrat or Republican fault all this activity went on and happened, but I think in future they need to pass a Hardship medical care act, to let the less fortunate like you did Purdue pharma that was allowed to file Bankruptcy on medical bill's. On incomes less then 40,000 a year ? 'Thoughts of a Brighter Fair America ?
Justin M says
This Reminds me of recent Times manipulating Finance activity of Natural Gas prices higher this year because of Russian Family Energy Businesses ? ( Shortages my Foot ? ) in recent years Russian energy companies signed a Gas energy deal with Germany ... Somebody should be investigating shortages, " What ever ? This Article and other like is Another examples of the Average American's Going to the cross to pay for Greedy Sin's of manipulative other Businesses ?