Should Debbie Do Delaware? An Examination of Bankruptcy Practice in the District of Delaware

By: Russell L. Munsch (Co-speaker) and Jay H. Ong (Co-speaker)
Advanced Business Bankruptcy Course
May 17-18, 2001

I. INTRODUCTION
In recent years the District of Delaware has received considerable attention and developed a reputation as the hotbed of corporate bankruptcy filings. This reputation has in fact spurred numerous statistical studies, ongoing debates over issues of forum shopping, and even cries for responsive measures by Congress. The implications are clear: during the career of a bankruptcy attorney, and regardless of the geographic locale of one's practice, the probability that a bankruptcy practitioner will find themselves dealing with a case venued in Delaware is significant indeed.

While most commentators agree that Delaware is a popular site for bankruptcy filings, they differ on the reasons behind this popularity, as well as whether this popularity is indicative of some systemic defect which should be addressed. Therefore, to better understand and prepare for the particulars of practicing in Delaware, this article will explore its popularity, the factors and reasons behind it, and what we can expect for the future. Along the way, we focus on the unique aspects of Delaware bankruptcy practice; the advantages, disadvantages and consequences; and those requirements and issues that every attorney should be prepared for.

II. THE BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE
Before delving into the substantive issues of Delaware bankruptcy practice, it is important to briefly familiarize ourselves with the Delaware Bankruptcy Court. The individual judges which sit on the Court continue to be of great significance to attorneys in deciding whether to advise clients to file in Delaware, how to manage Delaware cases, how to accurately predict rulings on various issues and how to structure arguments and pleadings so as to maximize the prospect of favorable rulings. Accordingly, following is a brief summary of the Delaware Bankruptcy Court's current judges.1

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