Chapter 15 of the US
Bankruptcy Code relates
to international
insolvency proceedings.
Specifically, Chapter 15 regulates
bankruptcy proceedings filed in
the US that are “ancillary” to an
insolvency proceeding in another
country. The need for Chapter 15
arises from the reality that many
insolvent companies have assets,
liabilities and claims in multiple
countries, including in the US.
Based on the United Nations’
Model Law on Cross-Border
Insolvencies, Chapter 15 was
enacted to promote cooperation
between US courts and foreign
courts during international
insolvency proceedings and to
promote greater legal certainty for
trade and investment.
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