The National Association of Attorneys General (NAAG) endorsed the Bankruptcy Venue Reform Act of 2021 in a letter signed by 43 attorneys general. NAAG had previously endorsed the Bankruptcy Venue Reform Act of 2020 during the 116th Congress as well.
If passed, the Bankruptcy Venue Reform Act of 2021 will:
- Limit where businesses may file bankruptcy by ensuring that they will do so in a jurisdiction in which their “principal assets” or their “principal place of business” are located; and
- Require rules to be prescribed to allow all governmental attorneys to appear without charge and without being required to associate with local counsel.
In the letter, the attorneys general contend that passage of the legislation will:
- Reduce forum shopping in the bankruptcy system.
- Strengthen the integrity of, and build public confidence and ensure fairness in, the bankruptcy system.
- Help consumers and other parties to be represented in court without undue burden.
- Level the playing field for state attorneys general to guard their states’ financial interests and enforce consumer protection laws.