Why Two Facets of Chapter 15 Rulings Hinder Cross-Border Insolvency Petitions in the United States
Court disagreement about two matters in chapter 15 rulings impacts whether foreign debtors may acquire relief from the United States Bankruptcy Code. First, courts disagree about whether § 109(a) applies to chapter 15 petitions for recognition. Second, courts use two separate dates to determine the debtor's center of main interests. Some courts use the chapter 15 petition date; other courts look further back and choose the beginning date of the foreign proceeding. For various reasons, § 109(a) was not supposed to apply to chapter 15 petitions, and the commencement date of the foreign proceeding is the correct date to determine a debtor's center of main interests.
Why Two Facets of Chapter 15 Rulings Hinder Cross-Border Insolvency Petitions in the United States,
Emory Bankr. Dev. J.
Available at: https://scholarlycommons.law.emory.edu/ebdj/vol32/iss2/6