US issues (including Chapter 11)

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Choice of venue and applicability of chapter 11

The threshold for commencing a case under chapter 11 of the US Bankruptcy Code is relatively low, so jurisdiction can be established if the debtor’s domicile, residence, principal place of business or principal assets is in the US. Non-US practitioners are often surprised to learn that the mere presence of assets (eg a US bank account) may suffice. For more information, see Practice Note: US Chapter 11 proceedings.

The debtor may wish to choose a particular state within the US (eg New York, Texas or Delaware) to file in based on various factors, including the location of key stakeholders, local court experience and different binding precedents on certain legal issues.

Certain entities may not file for chapter 11 relief, including insurance companies and banks.

If the business cannot be saved, it may choose to liquidate under chapter 7 (orderly liquidation may also be commenced under chapter 11). For more information, see Practice Note: US Chapter 7 liquidation.

Benefits of chapter 11

Benefits of filing for chapter 11 protection include:

  1. •

    it is a restructuring

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The Insolvency Service has announced that Nigel Dinneen was sentenced to 12 months’ imprisonment at Derby Crown Court on 15 January 2026 for obtaining £414,594 in credit from five victims without disclosing his bankruptcy status. Dinneen was declared bankrupt in July 2019 but continued accepting advance payments for building projects across the Midlands, breaching the legal requirement to disclose bankruptcy when obtaining credit of £500 or more. The Insolvency Service further confirmed that Dinneen also committed perjury by concealing multiple bank accounts from the Official Receiver during the bankruptcy investigation.

Restructuring & Insolvency weekly highlights—15 January 2026

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