What is the proper venue for a bankruptcy case?

Under section 1408 of the title 28 of the United States Code, a debtor may commence a bankruptcy case in any federal district in which the domicile, residence, principal place of business, or principal assets of the debtor have been located for 180 days than any other district. Here, the language clearly describes “the longest portion of the 180 days than any other district”. However, there can be more than one venue. For example, if the debtor’s residence and principal place of business have been in two different districts for 180 days.

What happened when incorrect venue is selected?

An incorrect selection of venue does not deprive bankruptcy jurisdiction, however, it may be transferred to the correct venue over the case. The court may transfer a case from a proper venue to a different venue in the interest of justice or for the convenience of the parties.


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