Chapter 15 was added to the Code by Bankruptcy Abuse Prevention and Consumer Protection Act , 2005 and adopts the provisions of the UNCITRAL Model Law on Cross Border Insolvency. It envisages providing solutions in bankruptcy situations to claimants, debtors, assets etc that is spread over the territory of more than one country. This chapter aims to inculcate an environment of cooperation between the US Government and the Governments and authorities of other countries. The proceedings under this chapter are initiated ancillary to bankruptcy proceedings initiated in another jurisdiction. The petition is filed for the recognition of foreign proceedings by a foreign representative. If the Court after perusal of the matter grants an order in favor of the petitioner, then provisions relating to bankruptcy such as automatic stay become applicable within the United States. It also protects the interest of the foreign creditors by prohibiting discriminatory statements against them.
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