Chapter 15

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Discharge In Bankruptcy

    A permanent order that releases the debtor from personal liability ...
  2. Chapter 13

    A U.S. bankruptcy proceeding in which the debtor undertakes a ...
  3. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  4. Chapter 11

    Named after the U.S. bankruptcy code 11, Chapter 11 is a form ...
  5. Chapter 7

    A bankruptcy proceeding in which a company stops all operations ...
  6. Bankruptcy Risk

    The possibility that a company will be unable to meet its debt ...
Related Articles
  1. What happens to a company's stocks and ...
    Investing

    What happens to a company's stocks and ...

  2. Bankruptcy Protection For Your Accounts
    Retirement

    Bankruptcy Protection For Your Accounts

  3. Do Your Investments Have Short-Term ...
    Investing Basics

    Do Your Investments Have Short-Term ...

  4. Getting Into International Investing ...
    Mutual Funds & ETFs

    Getting Into International Investing ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center