The Geography of Bankruptcy

59 Pages Posted: 14 Apr 2014 Last revised: 15 Apr 2016

See all articles by Laura Coordes

Laura Coordes

Arizona State University - Sandra Day O'Connor College of Law

Date Written: July 26, 2014

Abstract

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.

Keywords: Bankruptcy, Procedure

Suggested Citation

Coordes, Laura, The Geography of Bankruptcy (July 26, 2014). 68 Vand. L. Rev. 381 (2015), Available at SSRN: https://ssrn.com/abstract=2424313

Laura Coordes (Contact Author)

Arizona State University - Sandra Day O'Connor College of Law ( email )

Box 877906
100 S. McAllister Ave.
Tempe, AZ 85287-7906
United States

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