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The Geography of Bankruptcy

Posted by on Thursday, March 19, 2015 in Articles, Volume 68, Volume 68, Number 2.

The Geography of Bankruptcy


Companies routinely file bankruptcy cases in venues that have no meaningful connection to the company, its operations, or its stakeholders. This practice (1) divorces bankruptcy and venue from their ties to location; (2) disrupts the fundamental balance underlying the Bankruptcy Code by shifting the focus exclusively to the needs of sophisticated parties; and (3) shuts out parties who have a right to participate in bankruptcy proceedings, which contravenes due process and raises fairness concerns. To solve these problems, this Article proposes new procedures that mandate a thorough discussion of venue considerations in bankruptcy cases. By requiring parties to justify their venue choices under tougher standards and holding companies accountable for their venue decisions, the proposal helps ensure that bankruptcy cases are heard in places where key local voices and issues are recognized and addressed.


Visiting Assistant Professor, Sandra Day O’Connor College of Law, Arizona State University. J.D., University of Chicago Law School; B.A., New York University.