Where Are Most Chapter 11 Bankruptcies Filed? Key Insights

Most Chapter 11 bankruptcies are filed in the Southern District of New York and the District of Delaware. These two districts are preferred by many large corporations due to several factors:

Expertise

Judges in these districts have developed expertise in handling complex, large-scale bankruptcy cases, which can involve intricate financial restructuring and legal issues. 23

Proximity to Capital Markets

The Southern District of New York is close to major financial centers, facilitating access to investors and capital markets, which can be crucial for reorganization efforts. 2

Incorporation and Headquarters

Many companies are incorporated in Delaware and have significant assets or operations in New York, making these districts eligible venues for bankruptcy filings under the Bankruptcy Code. 23

Legal Precedents

These districts have established legal precedents and practices that are favorable for large, complex bankruptcy cases, providing a predictable legal environment for debtors and creditors. 2 These factors contribute to the concentration of Chapter 11 filings in the Southern District of New York and the District of Delaware.