Section 6.23 Venue Limitations on Preference Actions

LibraryBankruptcy Practice (2007 Ed. + 2015 Cum Supp)

I. (§6.23) Venue Limitations on Preference Actions

Under prior 11 U.S.C. § 547, trade vendors of Chapter 11 debtors had to deal with an overwhelming number of preferences filed in distant venues. BAPCPA added a venue limitation, effective for cases commenced after October 17, 2005, which requires that preference avoidance actions against noninsiders seeking less than $10,000 be commenced in the district where the defendant resides. 28 U.S.C. § 1409(b).

Section 1409(b), as...

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