Chapter 15 Bankruptcy

Although possibly the least well-known Chapter in the US Bankruptcy Code, Chapter 15 is becoming more and more common as business increasingly becomes international in nature. The fact is that the modern Internet-driven world has made fewer and fewer borders to business, and naturally as a result, there have been more cases in which bankruptcies in one country spill over into another country. For this reason, the United States Bankruptcy Code includes Chapter 15, which deals specifically with international cases and foreign debtors.

If your business is facing international bankruptcy, contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A., by calling 561-353-2800 today.

Understanding Chapter 15

Because so many of today’s bankruptcy cases involve items or information in multiple countries – each of which has its own bankruptcy laws – the US government instituted Section 304 in 1978. Since then, Section 304 has been replaced with the more modern and complete Chapter 15. Chapter 15 is built on the United Nations’ Model Law on Cross-Border Insolvency, and allows the US to respond to problems that inevitably arise from cross-jurisdiction bankruptcies.

Chapter 15 provides the government the ability to issue subpoenas, orders to take over assets, regulate stays on actions, and various other options given the circumstances. In addition, the chapter provides conditions for the US government to work with the governments of foreign countries regarding the bankruptcy proceedings.

Contact Us

If you are facing bankruptcy that will affect your holdings in multiple countries, Chapter 15 may be right for you. To learn more, contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A., by calling 561-353-2800.