If you’ve been doing research on bankruptcy, you are probably pretty familiar with Chapter 7 and Chapter 13 bankruptcy. However, these are not the only bankruptcy options. There are some other kinds of bankruptcy that you should consider before deciding which is best for you. Chapter 20 bankruptcy and Chapter 9 bankruptcy are both good options if you meet the criteria for them. Another less common type of bankruptcy that you should consider is Chapter 15 bankruptcy. However, make sure that you can meet the specific criteria for this type of bankruptcy before getting too involved with it.
Chapter 15 bankruptcy is probably the least common from of bankruptcy in America. Added to the Bankruptcy Code in 2005, Chapter 15 bankruptcy allows a foreign debtor to use the U.S. Bankruptcy Courts. This form of bankruptcy came into effect along with the Bankruptcy Abuse Prevention and Consumer Protection Act. Chapter 15 bankruptcy is concerned with international bankruptcy issues in order to promote the relationship between the United States courts and the courts of other countries that are involved in cross-border insolvency cases. In such cases, the interests of both the debtor and the creditor are protected. In addition, Chapter 15 bankruptcy establishes a higher level of legal certainty for investment and trade.
In order to file for Chapter 15 bankruptcy, a foreign representative has to request the recognition of the foreign proceeding. In addition, the case should be filed with the U.S. Bankruptcy Court, along with a petition proving the existence of the foreign proceeding. A Chapter 15 bankruptcy case will be classified as a foreign main proceeding or a foreign non-main proceeding. If the debtor doesn’t have a main interest in the United States, the case is classified as a foreign non-main proceeding. If the case is a foreign main proceeding, an automatic stay will be put into place in the United States. This can protect the foreign debtor’s assets that are in the United States. Chapter 15 bankruptcy is similar to Chapter 20 bankruptcy in that you can file for multiple chapters of bankruptcy in each. Once the Chapter 15 bankruptcy case is applied for, the foreign representative can file for another type of bankruptcy, such as Chapter 7 bankruptcy.
If you are not a U.S. citizen, or you know a non-citizen that is interested in obtaining the protection of the U.S. Bankruptcy Court, you should look into filing for Chapter 15 Bankruptcy. However, it is important to keep in mind that because this type of bankruptcy is so new, it is still fairly uncommon. It can also be difficult to obtain a Chapter 15 bankruptcy given the complex factors involved with such cases. However, if you are interested in learning more or if you have specific questions for a bankruptcy lawyer, you can contact a Attorney Theresa Rose DeGray by clicking here.