§1501 Purpose and scope of application

Summary

Uses the Model Law on Cross‑Border Insolvency to set rules for handling bankruptcies that involve more than one country. It requires U.S. and foreign courts and officials to cooperate. It aims to make trade and investment more certain, to run fair and efficient cross‑border cases that protect creditors and debtors, to protect and raise the value of the debtor’s assets, and to help save struggling businesses and jobs. The rules apply when a foreign court or representative asks for help in the U.S.; when help is sought abroad in a U.S. bankruptcy; when a foreign proceeding and a U.S. case are happening at the same time for the same debtor; or when people in another country want to start or join a U.S. case. The rules do not apply to entities excluded by section 109(b) (except foreign insurance companies), to individuals (or an individual and spouse) with debts within the limits in section 109(e) who are U.S. citizens or lawful permanent residents, or to cases under the Securities Investor Protection Act or special bankruptcy rules for stockbrokers and commodity brokers. Courts may not use these rules to affect deposits, escrows, trust funds, or other security that state insurance law requires or allows for the benefit of U.S. claim holders.