11 U.S.C. § 1507: Additional assistance

Summary

When a U.S. court recognizes a foreign representative, it may give extra help under this law or other U.S. laws, subject to limits elsewhere in the chapter. Before doing so, the court must decide whether the help, while respecting foreign courts, will reasonably ensure five things: fair treatment of all people with claims or interests, protection of U.S. claim holders from unfairness or trouble, prevention of fraudulent or favored transfers of the debtor’s property, distribution of the debtor’s assets mostly according to the rules in this law, and, when appropriate, a chance for the individual involved to get a fresh start.

Title 11, §1507

Bankruptcy, Source: USLM XML via OLRC

(a)Subject to the specific limitations stated elsewhere in this chapter the court, if recognition is granted, may provide additional assistance to a foreign representative under this title or under other laws of the United States.

(b)In determining whether to provide additional assistance under this title or under other laws of the United States, the court shall consider whether such additional assistance, consistent with the principles of comity, will reasonably assure—

(1)just treatment of all holders of claims against or interests in the debtor’s property;

(2)protection of claim holders in the United States against prejudice and inconvenience in the processing of claims in such foreign proceeding;

(3)prevention of preferential or fraudulent dispositions of property of the debtor;

(4)distribution of proceeds of the debtor’s property substantially in accordance with the order prescribed by this title; and

(5)if appropriate, the provision of an opportunity for a fresh start for the individual that such foreign proceeding concerns.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such

Effective Date

, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an

Effective Date

of 2005 Amendment note under section 101 of this title.

§1507 Additional Assistance

Summary

Title 11, §1507

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata