For decades, Delaware and the Southern District of New York dominated large corporate Chapter 11 bankruptcy filings. That landscape is shifting.
Bloomberg Law reported last year that Dallas and Houston are now attracting more large corporate bankruptcies than Delaware, with Texas courts handling dozens of cases involving companies with assets exceeding $100 million (“Mega Cases”). It should be noted that Dallas and Houston are two separate Texas districts, whereas Delaware is one district. Only in combination does Dallas and Houston outnumber Delaware’s large corporate bankruptcy filing numbers. Nonetheless, the growth in Texas’ large bankruptcy case filings has been remarkable, rising from 18 in 2024 to 33 in 2025.
This growth in bankruptcy filings has been somewhat intentional. According to a Bill Analysis of C.S.H.B. 19. Texas passed C.S.H.B. 19 in June of 2023 to create and open the specialized Business Courts in Texas as of September 1st, 2024. Texas has long held a reputation of having high specialized courts. Texas has also begun to develop a reputation as one of the most favorable states to do business in; Texas lawmakers hoped the creation of these courts would increase the amount of business being drawn to Texas, and their courts. While the specialized business courts do not handle bankruptcies themselves, their availability for auxiliary matters has certainly attracted more business. This strategy has largely been successful, evidenced by filings consisting mostly of companies restructuring, rather than filing for liquidation, indicating businesses will likely continue to litigate, and restructure, in Texas.
The specialized Texas Business Courts are not the only reason for the increase in bankruptcy filings. An experienced bankruptcy bench, procedural predictability, and jurisprudence from the Fifth Circuit that many view as business focused, are also paving the way for more businesses to view Texas as the best state for their commercial and litigation matters.
For creditors, venue is much more than a technicality. The chosen court influences everything from case pacing and DIP financing approvals to litigation procedures and plan confirmation standards. In 2024, the Supreme Court’s Purdue Pharma decision, prohibited certain nonconsensual third-party releases. This decision narrowed differences among circuits, potentially making venue selection even more strategic.
Both Dallas and Houston have rules governing large Chapter 11 cases that give lawyers some indication of which judge may be handling their case. The appointment of new judges in Houston and the steady growth of Dallas filings have further solidified Texas as a preferred restructuring venue. Critics argue that structured case-assignment rules may encourage forum selection based on perceived judicial familiarity. Supporters counter that predictability benefits all stakeholders. Either way, venue choice can, in some circumstances, materially affect recoveries and outcomes.
For decades Delaware and the Southern District of New York have garnered the most business and bankruptcy filings. While Delaware still leads as a single district, filings have been more diverse in recent years, and numbers are not just increasing in Texas. As bankruptcy filings diversify across the country, keeping a close eye on how decisions shape circuit’s rulings, and subsequently how they impact creditors moving forward, is crucial to stakeholders.
As more larger debtor cases gravitate toward Texas in 2026, creditors should evaluate venue early in the case and be prepared to challenge or leverage forum selection where appropriate.
THCA represents creditors in complex Chapter 11 proceedings nationwide, helping clients protect leverage from the earliest stages of venue selection through plan confirmation and litigation.
For more information, please contact us at +1 (617) 207-8670 or visit https://thcalaw.com/contact/