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Pax­ton Joins Coali­tion to Stop Cor­po­ra­tions from Forum Shopping


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Ken Paxton, Attorney General of Texas

Austin (News Release) - Attorney General Ken Paxton joined a coalition of 43 states and territories to support the Bankruptcy Venue Reform Act. Currently, individuals can file for bankruptcy only in the district where they reside, but corporations are permitted to file wherever an affiliated entity is incorporated. This can lead to rampant forum shopping by corporations filing in bankruptcy court jurisdictions that feature favorable laws. Congressional passage of the Bankruptcy Venue Reform Act would curb such abuse.

Read the letter here.


Legal Definition of forum shopping

The practice of choosing the court in which to bring an action from among those courts that could properly exercise jurisdiction based on a determination of which court is likely to provide the most favorable outcome.

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