Stop Venue Shopping in Bankruptcies

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NACM is urging all of its members to support a bill in Congress that would require corporations to file Chapter 11 cases in the judicial district where they have their principal place of business or principal assets. H.R. 2533—the Chapter 11 Bankruptcy Venue Reform Act—would strongly curb the practice of venue shopping, whereby debtors choose to file in a jurisdiction that’s sympathetic to their needs, much to the detriment of their smaller creditors, who often have trouble participating in a case filed far away from their headquarters. NACM has already officially offered its support to H.R. 2533, but now we’re calling on you, the members, to write a letter to your representatives, asking them to support this bill.

To participate, first find your representative’s contact information  (be sure to use your company’s address, rather than your personal address, when determining which congressperson to write to).

Download this letter template. (380). You can edit with your representative’s contact information, as well as any personal experience you might’ve had with venue shopping. Be sure to edit the letter before mailing, or emailing it, since these letters hit hardest when they’ve been written by actual constituents, rather than just a generic form letter.

The more letters sent, the more likely the bill is to pass! Act now, and strike a blow for the nation’s trade creditors. If you have any questions, please contact Jacob Barron, NACM staff writer and government affairs liaison at jakeb@nacm.org.

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