I 
117TH CONGRESS 
1ST SESSION H. R. 4193 
To amend title 28, United States Code, to modify venue requirements relating 
to bankruptcy proceedings. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 28, 2021 
Ms. LOFGREN (for herself and Mr. BUCK) introduced the following bill; which 
was referred to the Committee on the Judiciary 
A BILL 
To amend title 28, United States Code, to modify venue 
requirements relating to bankruptcy proceedings. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Bankruptcy Venue Re-
form Act of 2021’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds that— 
(1) bankruptcy law provides a number of venue 
options for filing bankruptcy under chapter 11 of 
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title 11, United States Code, including, with respect 
to the entity filing bankruptcy— 
(A) any district in which the place of in-
corporation of the entity is located; 
(B) any district in which the principal 
place of business or principal assets of the enti-
ty are located; and 
(C) any district in which an affiliate of the 
entity has filed a pending case under title 11, 
United States Code; 
(2) the wide range of permissible bankruptcy 
venue options has led to an increase in companies 
filing for bankruptcy outside of their home States— 
the district in which the principal place of business 
or principal assets of the company is located; 
(3) the practice described in paragraph (2) is 
known as ‘‘forum shopping’’; 
(4) forum shopping has resulted in a concentra-
tion of bankruptcy cases in a limited number of dis-
tricts; 
(5) forum shopping— 
(A) prevents small businesses, employees, 
retirees, creditors, and other important stake-
holders from fully participating in bankruptcy 
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cases that have tremendous impacts on their 
lives, communities, and local economies; and 
(B) deprives district courts of the United 
States of the opportunity to contribute to the 
development of bankruptcy law in the jurisdic-
tions of those district courts; and 
(6) reducing forum shopping in the bankruptcy 
system will strengthen the integrity of, and build 
public confidence and ensure fairness in, the bank-
ruptcy system. 
(b) PURPOSE.—The purpose of this Act is to prevent 
the practice of forum shopping in cases filed under chapter 
11 of title 11, United States Code. 
SEC. 3. VENUE OF CASES UNDER TITLE 11. 
Title 28, United States Code, is amended— 
(1) by striking section 1408 and inserting the 
following: 
‘‘§ 1408. Venue of cases under title 11 
‘‘(a) PRINCIPAL PLACE
OF BUSINESS WITH RE-
SPECT TO CERTAIN ENTITIES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for the purposes of this section, if an en-
tity is subject to the reporting requirements of sec-
tion 13 or 15(d) of the Securities Exchange Act of 
1934 (15 U.S.C. 78m, 78o(d)), the term ‘principal 
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place of business’, with respect to the entity, means 
the address of the principal executive office of the 
entity as stated in the last annual report filed under 
that Act before the commencement of a case under 
title 11 of which the entity is the subject. 
‘‘(2) EXCEPTION.—With respect to an entity 
described in paragraph (1), the definition of the 
‘principal place of business’ under that paragraph 
shall apply for purposes of this section unless an-
other address is shown to be the principal place of 
business of the entity by clear and convincing evi-
dence. 
‘‘(b) VENUE.—Except as provided in section 1410, 
a case under title 11 may be commenced only in the dis-
trict court for the district— 
‘‘(1) in which the domicile, residence, or prin-
cipal assets in the United States of an individual 
who is the subject of the case have been located— 
‘‘(A) for the 180 days immediately pre-
ceding such commencement; or 
‘‘(B) for a longer portion of the 180-day 
period immediately preceding such commence-
ment than the domicile, residence, or principal 
assets in the United States of the individual 
were located in any other district; 
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‘‘(2) in which the principal place of business or 
principal assets in the United States of an entity, 
other than an individual, that is the subject of the 
case have been located— 
‘‘(A) for the 180 days immediately pre-
ceding such commencement; or 
‘‘(B) for a longer portion of the 180-day 
period immediately preceding such commence-
ment than the principal place of business or 
principal assets in the United States of the en-
tity were located in any other district; or 
‘‘(3) in which there is pending a case under 
title 11 concerning an affiliate that directly or indi-
rectly owns, controls, or holds 50 percent or more of 
the outstanding voting securities of, or is the general 
partner of, the entity that is the subject of the later 
filed case, but only if the pending case was properly 
filed in that district in accordance with this section. 
‘‘(c) LIMITATIONS.— 
‘‘(1) IN GENERAL.—For the purposes of para-
graphs (2) and (3) of subsection (b), no effect shall 
be given to a change in the ownership or control of 
an entity that is the subject of the case, or of an af-
filiate of the entity, or to a transfer of the principal 
place of business or principal assets in the United 
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the equity interest is located, as determined in 
accordance with subsection (b)(1). 
‘‘(d) BURDEN.—On any objection to, or request to 
change, venue under paragraph (2) or (3) of subsection 
(b) of a case under title 11, the entity that commences 
the case shall bear the burden of establishing by clear and 
convincing evidence that venue is proper under this sec-
tion. 
‘‘(e) OUT-OF-STATE ADMISSION FOR GOVERNMENT 
ATTORNEYS.—The Supreme Court shall prescribe rules, 
in accordance with section 2075, for cases or proceedings 
arising under title 11, or arising in or related to cases 
under title 11, to allow any attorney representing a gov-
ernmental unit to be permitted to appear on behalf of the 
governmental unit and intervene without charge, and with-
out meeting any requirement under any local court rule 
relating to attorney appearances or the use of local coun-
sel, before any bankruptcy court, district court, or bank-
ruptcy appellate panel.’’; and 
(2) by striking section 1412 and inserting the 
following: 
‘‘§ 1412. Change of venue 
‘‘(a) IN GENERAL.—Notwithstanding that a case or 
proceeding under title 11, or arising in or related to a case 
under title 11, is filed in the correct division or district, 
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a district court may transfer the case or proceeding to a 
district court for another district or division— 
‘‘(1) in the interest of justice; or 
‘‘(2) for the convenience of the parties. 
‘‘(b) 
INCORRECTLY
FILED
CASES
OR
PRO-
CEEDINGS.—If a case or proceeding under title 11, or aris-
ing in or related to a case under title 11, is filed in a 
division or district that is improper under section 1408(b), 
the district court shall— 
‘‘(1) immediately dismiss the case or pro-
ceeding; or 
‘‘(2) if it is in the interest of justice, imme-
diately transfer the case or proceeding to any dis-
trict court for any district or division in which the 
case or proceeding could have been brought. 
‘‘(c) OBJECTIONS
AND REQUESTS RELATING
TO 
CHANGES IN VENUE.—Not later than 14 days after the 
filing of an objection to, or a request to change, venue 
of a case or proceeding under title 11, or arising in or 
related to a case under title 11, the court shall enter an 
order granting or denying the objection or request.’’. 
Æ 
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