what is chapter 15 bankruptcy

Chapter 15 bankruptcy is a section in the U.S. Bankruptcy Code that was added in 2005 to provide for cooperation between U.S. courts and foreign courts when foreign bankruptcy cases involve debtors, assets, claimants, and other parties of interest involving more than one country. The primary goal of Chapter 15 bankruptcy is to promote cooperation among U.S. courts, their appointed representatives, and foreign courts and to make legal proceedings of international bankruptcies more predictable and fair for debtors and creditors. Chapter 15 bankruptcy is not for the reorganization, discharge, or liquidation of debt, but instead, its a set of rules and procedures that determine how the United States court system will handle foreign bankruptcy cases. The typical Chapter 15 case involves an insolvent foreign company filing a petition to request the assistance of a U.S. bankruptcy court.