What is Chapter 15 Bankruptcy?

Bankruptcy in the United States is focused on helping both debtors and creditors. However, if the debt involves a foreign entity then there can be a range of issues that come up. To help prevent creditors from being used by foreign entities and to help foreign entities from being overcome by debt in the US Chapter 15 bankruptcy was developed.

Chapter 15 Bankruptcy is created to regulate debts owed by local businesses to foreign businesses. The chapter helps to avoid the many conflicts and ensure the creditors do not completely lose out in the process of trying to regain the money owed to them.