Jurisdiction issues
It happens with increasing frequency that aUNCITRAL
Chapter 15 incorporates the Model Law on Cross Border Insolvency drafted by the United Nations Commission on International Trade Law. The law provides solutions to problems which arise in connection with cross-border bankruptcy, allowing US courts to issue subpoenas, orders to turn over assets, stays on pending actions, and orders of other types as circumstances dictate. The ancillary proceeding permitted under Chapter 15 is often a more efficient and less costly alternative to initiating an independent bankruptcy proceeding in the United States. Chapter 15 also avoids conflicts and establishes mechanisms for cooperation between US and foreign courts and representatives regarding proceedings which involve the sameDiscretionary assistance
Whether the US courts will extend the "additional assistance" sought in connection with a foreign proceeding under Chapter 15 is a matter of discretion. The main consideration US courts will take into account in making this decision is whether the laws of the foreign jurisdiction violate the laws or public policy of the United States and whether the foreign courts conduct their proceedings according to basic rules of procedural fairness. Among other factors the US courts will consider is how the foreign jurisdiction treatsOriginal Chapter 15 (1978–1984)
The original 1978 Bankruptcy Code had a different Chapter 15 dealing with the United States Trustee Program, which it established as a trial in some judicial districts to assume roles which formerly belonged to the bankruptcy judge and others, including the selection and oversight of private trustees in individual cases. At that time, the other chapters of the Bankruptcy Code described how bankruptcy worked in districts without United States Trustees; original Chapter 15 modified the text of the other chapters for districts with United States Trustees. Section numbers in original Chapter 15 incorporated the section numbers in the main Code that they modified; for example, section 151325 (a section of original Chapter 15) modified section 1325, which sets the requirements ofExternal links