A Look at Transnational Insolvencies and Chapter 15 of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Abstract

Transnational insolvency cases inherently involve questions of jurisdiction and conflicts of law. In an attempt to add uniformity to international insolvency law, the United Nations Commission on International Trade Law (UNCITRAL) unanimously adopted the text of the Model Law on Cross Border Insolvency on May 30, 1997. Congress, drawing from UNCITRAL's Model Law, reformed the United States' statutory law on international bankruptcies, namely section 304 of the Bankruptcy Code, as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. This Article examines current theoretical approaches to international insolvencies, prior law on international insolvency, and the probable effect of Chapter 15's addition to the Bankruptcy Code.