Federal lawmakers on Thursday proposed a bill that would require companies to file for chapter 11 bankruptcy in a courtroom close to their principal place of business, rather than where they are incorporated.
The bipartisan bill, called the Bankruptcy Venue Reform Act of 2019, hopes to spread bankruptcy cases throughout the US to ensure that employees, small businesses and local employees are able to fully and fairly participate in the proceedings.
Current federal law allows companies to file for bankruptcy protection either where they are incorporated or where they operate much smaller affiliates.
