Cross-Border Insolvency: Access to Chapter 15 in Conjunction with Foreign Proceedings

Chapter 15 proceedings have become commonplace as globalization and integration of the world's economies have taken hold. Chapter 15 was added to the bankruptcy code in 2005 with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act, which allows foreign debtors to access U.S. bankruptcy courts.

Faegre Baker Daniels finance & restructuring partners John Burns and George Mesires authored an article appearing on the American Bankruptcy Institute website explaining why chapter 15 proceedings have increased in recent years as well as the effects of recognizing foreign proceedings in U.S. bankruptcy courts.