Cross-border insolvency and assets in the United States
Foreign representatives of pending insolvencies abroad contact our office seeking help with reaching debtor’s assets in the United States. Depending on the concrete situation, Chapter 15 under the U.S. Bankruptcy Code may be appropriate. Chapter 15 was added to the U.S. Bankruptcy Code in 2005 and helps courts in different countries to cooperate and coordinate the administration of debtor’s assets located in different countries.
A foreign representative may petition U.S. bankruptcy court for recognition of foreign insolvency proceeding. Once the foreign main insolvency proceeding is recognized, all collections, executions against debtor’s assets and lawsuits are stopped, foreign representative may sell debtor’s assets, recover certain transfer and have other powers that allow him or her to administer debtor’s assets.
While number of Chapter 15 insolvencies increased from six in 2005 to 136 in 2009, the highest number of Chapter 15s (179) was filed in 2016. During years 2010-2019, the average number of Chapter 15 is 103.5 per years
Please note that this article does not constitute legal advice. We simplified the law to provide general information about Chapter 15 bankruptcy. If you would like to discuss if Chapter 15 bankruptcy will help in your situation, schedule a consultation with an experienced bankruptcy lawyer in Phoenix at www.calendly.com/irena-3 today or call our office at 480-425-2009.