DEFINITION of 'Chapter 15'
A chapter under the U.S. Bankruptcy Code, added to foster a cooperative environment in international insolvencies. Chapter 15's primary goal is to promote cooperation between U.S. courts, appointed representatives and foreign courts.
This chapter of the Bankruptcy Code is designed to make legal proceedings of international bankruptcies more predictable and fair for debtors and creditors. Chapter 15 also tries to protect the value of the debtor's assets and, if possible, financially rescue the business.
BREAKING DOWN 'Chapter 15'
Chapter 15 is adopted from the United Nations Commission on International Trade Law's (UNCITRAL) Model Law on International Commercial Arbitration. Several countries, including Japan, Canada and Mexico, have adopted this law to reduce the risk for creditors and stakeholders of international companies.