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Skilled Attorneys Assisting With Chapter 15 Proceedings

Last updated on February 6, 2025

In today’s world, companies and entrepreneurs often have operations and assets spanning multiple countries. This interconnectedness can pose difficulties when a business venture becomes insolvent. Chapter 15 of the U.S. Bankruptcy Code aims to address these challenges. At Williams LLP, our international lawyers offer dedicated support in Chapter 15 proceedings. With offices in New York, London and Monrovia, we provide clients with honest legal guidance and dependable advocacy.

What Is Chapter 15?

Chapter 15 is a section of the U.S. Bankruptcy Code dealing with foreign insolvency proceedings. It was added in 2005 and is based on a model law developed by the United Nations Commission on International Trade Law (UNCITRAL).

How Are Chapter 15 Proceedings Different From Other Types Of Bankruptcy?

Unlike other U.S. bankruptcy filings, Chapter 15 proceedings are not standalone bankruptcy cases. They are ancillary proceedings connected to a foreign bankruptcy case that has already started. Under the section, a U.S. court can recognize the foreign case, allowing parties to access U.S. legal tools to enforce aspects of the case related to assets in the U.S.

What Are The Benefits Of Chapter 15?

Chapter 15 provides several advantages for the parties in a foreign bankruptcy case. Such filings can:

  • Allow for the efficient administration of cross-border insolvency issues
  • Help protect the value of the debtor’s assets
  • Promote cooperation between jurisdictions

This can lead to more streamlined resolutions for both debtors and creditors.

How A Chapter 15 Case Works

A Chapter 15 case begins with a foreign insolvency representative filing a petition for recognition in the U.S. This representative is the person responsible for administering asset liquidation or reorganization in the foreign insolvency case. If the U.S. court recognizes the foreign case, the representative can then seek relief concerning applicable U.S. assets. At this point, the representative also has the option to pursue a full bankruptcy case in the U.S.

Foreign Main Vs. Foreign Non-Main

To recognize a foreign insolvency case under Chapter 15, a U.S. bankruptcy court must classify it as either a foreign main or foreign non-main proceeding:

  • Foreign main proceeding: When the foreign insolvency case is from the same jurisdiction where the debtor’s main interests are located.
  • Foreign non-main proceeding: An insolvency case in a country in which the debtor has substantial economic activity, but is not the main location of their interests.

This classification makes a significant difference. Main proceedings get certain types of relief automatically when recognized, whereas non-main proceedings do not.

Knowledgeable Chapter 15 Guidance

Chapter 15 cases can be complex and challenging. Our attorneys are here to help you with their extensive knowledge and experience in international law and insolvency matters. They will provide straightforward guidance that aims to support your objectives.

Contact Our Dependable Chapter 15 Attorneys Today

Let our multilingual team help you with your unique needs when it comes to your cross-border insolvency case. Contact us today by reaching out online or calling 917-730-2454.