Chapter 15: US Cross-Border Insolvency Rules
Bob Eisenbach's post at In The (Red) is a great overview of Chapter 15, the US implementation of the UNCITRAL Model Law on Cross-Border Insolvency.
As Bob says:
On October 17, 2005, as part of the Bankruptcy Abuse Prevention and Consumer Protection Act (known as "BAPCPA"), a new Chapter 15 of the Bankruptcy Code went into effect governing ancillary and other cross-border cases. (For those already familiar with ancillary proceedings, Section 304 of the Bankruptcy Code, which previously governed those proceedings, was repealed although many of its concepts have been retained in Chapter 15.)"
Chapter 15 is used:
- principally by representatives of or creditors in foreign insolvency proceedings to obtain assistance in the United States;
- by a debtor or others seeking to obtain assistance in a foreign country regarding a bankruptcy case in the United States; or
- when both a foreign proceeding and a bankruptcy case in the United States are pending with respect to the same debtor.
A really useful feature of Bob's post for those who want detailed analysis is the chart comparing Chapter 15 and the Model Law's provisions, prepared by his partner Adam Rogoff.
