Chip Bowles Discusses Legal Precedent Trumping Fees When Deciding Bankruptcy Venue with Reuters Legal
Legal precedent outweighs a court’s reputation on fees when it comes to choosing where to file major Chapter 11 cases, according to a government survey that tackled the contentious issue of venue selection for large business bankruptcies.
The U.S. Government Accountability Office (GAO) said in its survey report released on Sept. 23, 2015, that its interest in venue selection was piqued by concerns raised about bankruptcy professionals reaping large fees for bringing Chapter 11 cases in certain jurisdictions.
Bingham Greenebaum Doll LLP partner Chip Bowles discussed the survey and venue selection for large business bankruptcies with Reuters Legal. Although legal precedent was shown to be the major factor, perceived court attitudes on professional fees is also a significant element to consider.
“The first thing is, you don’t want a case to go off the rails,” said Bowles. Both legal precedent and perceived court attitudes are key factors to be considered when choosing a venue for large business bankruptcies.