Effective enforcement of the law is at the heart of what attorneys general do. However, just doing all the work to investigate, litigate, or settle a case and obtain a commitment for financial restitution isn’t all the job entails. Any defendant facing a large payment obligation or expenditure as part of a settlement will inevitably consider filing for bankruptcy in the hopes that it can relieve itself of those burdens.
Therefore, knowledge of the effects of bankruptcy, and how to prepare for and counter them, must be part of an attorney general’s overall enforcement strategy.
We support H.R. 4193, and S. 2827, the Bankruptcy Venue Reform Act of 2021.
Corporations, however, can file in any district in which they are incorporated, have their principal place of business or principal assets – or in any district where an affiliated entity, no matter how small or recently created, has filed bankruptcy using any of these provisions.