Chapter 15 Trustee
Bankruptcy is a complicated matter. An individual can file bankruptcy under different chapters like Chapter 7 Bankruptcy, 13 and 11. However, there are instances when a person or company would need to file for a different chapter like Chapter 15 bankruptcy. This results to people asking about the chapter and inquiring about a Chapter 15 trustee’s responsibilities.
Understanding Chapter 15
Chapter 15 is new compared to the aforementioned three chapters. This chapter deals with cross-border aspects of companies filing for bankruptcies. Many of these companies have overseas assets that should be declared and used for the bankruptcy process or for debtors’ own interest. Nevertheless, overseas regulations and jurisdictions may affect the filing process. Companies filing for this chapter can get assistance in dealing with their other assets.
Aside from mere asset assistance, this chapter also aids in promoting equal creditor treatment regardless of their locations. The asset location causes a drop on asset values than the actual amount of money owed at the location.
Getting to Know the Proceedings
Communication and cooperation are the keys in promoting Chapter 15. The US courts and related parties would need to communicate with foreign entities when it comes to bankruptcy procedures, ensuring assets are maximized to ensure proper debt management.
In this scenario, the debtor will need to undergo foreign proceeding held in the country where the assets or located under its court’s jurisdiction. A foreign representative will take part in the case representing for the case or the trustee who will handle reorganization plans. A foreign representative may also have the power to liquidate the disputed assets. This representative has similar powers as a trustee.
Filing bankruptcy under this chapter would require document submission related to the availability of foreign proceeding. Documents must be duly signed and authorized by the foreign representative.
Once the court receives the document, it will notify involved parties for a hearing and decide which type the foreign proceeding falls under. It can be a main proceeding where the debtor has majority of its assets and do mainly his business in the country. It is a non-main proceeding if only a minor part of the assets and businesses are held within the country or its jurisdiction. If the case is considered a main proceeding, the debtor will be given privilege through automatic stay.
On the other hand, the federal representative will ask assistance from his state or other states’ bankruptcy court. They will handle the insolvency proceedings.
The foreign representative may also file bankruptcy under other chapters depending on the most beneficial one for everyone.
Looking for a Reliable Lawyer and Trustee
Although Chapter 15 is relatively new than other chapters, you can still find a lot of experts who are well-versed in this case. Look for the best bankruptcy attorney and trustee that can serve as foreign representative for your case.
Chapter 15 is a beneficial code for companies with assets and business branches overseas. It protects the debtor while maximizing asset value that will help in dealing with bankruptcy cases. Get a trustworthy bankruptcy expert to help with your case.