This of course is one of the most frequently asked question, and it pretty obvious many people want to know what is it. This is one of the most unique bankruptcy chapters that was actually added into the 2005 bankruptcy code following the coming into effect of the Bankruptcy Abuse Prevention and Consumer Protection Act. What this set of law normally does is quite complicated. It actually allows any kind of proceeding of any foreign debtor or any other related party to be conducted in the US bankruptcy courts. In short, it is the US adoption of the UN commission on the global trade.
What are the roles of chapter 15 bankruptcy laws?
a. It actually boosts the relation that exist between the US courts and other parties’
b. It promotes one of the fairest administration of any cross border issues thus protecting creditors, as well, as the debtors’
c. offer one of the most effective protection when it comes to maximization of any debtor assets
How proceedings are normally conducted
Technically, chapter 15 bankruptcy is not only the key bankruptcy proceeding by any foreigner or others entities. It is basically secondary. The main proceedings, in any case, will take place in the home soil of the foreigner. However, when it comes to the filing of case, it must be filed in the US court by any foreign representative. He or she will actually request for the foreign proceeding to be recognized. However, the petition must at all times prove beyond any reasonable doubt that the proceedings truly exist.
Immediately after the case has been filed, the court will then classify the processing into any one of the two; foreign non-main proceeding or foreign main proceeding. The only difference between the two is that when it comes to non-man the debtor basically does not have any kind of interest in that particular country. After the proceedings have been recognized, they go into full effect in the US and start protecting the existing assets of the debtor that are within the US. Basically, there are a lot that goes into this law; the above are just but a few of them. Chapter 15 basically addresses the issues of international bankruptcy.