CROSS-BORDER INSOLVENCY – WITHIN THE UK AND OUTSIDE THE EUROPEAN UNION
All property belonging to the insolvent, wherever situated, is covered by the Act [note 1] [note 2] [note 3]. Therefore, under English law the liquidator or trustee has the power to deal with all assets. In practice, however, it is often the case that the country in which the property is situated will retain control of the property, regardless of the making of an insolvency order in England and Wales.
The approach to insolvency law differs widely between nations, both in terms of the practical approaches to dealing with insolvency and in respect of matters of the principles of public policy. This can lead to difficulties in dealing effectively with insolvencies that have a cross-border dimension. Recent developments in international law have improved the position in respect of the recognition of foreign insolvency proceedings.
The information and advice given in this chapter covers the procedures under the Act, the UNCITRAL Model Law on Cross-Border Insolvency and the related Cross-Border Insolvency Regulations 2006.
Chapter 43.0 provides official receivers with guidance and practical advice (including template letters) to assist when dealing with a bankrupt’s affairs overseas.
The chapter is divided into the following parts:
Part 1 – Cross-border insolvency concerning countries outside the UK (paragraphs 42.2 to 42.29)
Part 2 – UNCITRAL Model Law on Cross-Border Insolvency (paragraphs 42.30 to 42.57)
Part 3 – Application of UNCITRAL Model Law to England and Wales (paragraphs 42.58 to 42.81)
Part 4 – Cross-border insolvency within the UK (paragraphs 42.82 to 42.94)
Part 5 – Disqualification and bankruptcy restrictions overseas (paragraphs 42.95 to 42.98)
The chapter contains the following annexes:
Annex A – Precedent application for recognition of an insolvency overseas
Annex B – Precedent application for assistance from courts in other parts of the UK
The following abbreviations have been used in this chapter:
CLOUT – Case Law on UNCITRAL Texts
Cross Border Regulation – The Cross-Border Insolvency Regulations 2006
EC Regulation – The EC Regulation on Insolvency Proceedings 2000
The Model Law – The UNCITRAL Model Law on Cross-Border Insolvency
UN – United Nations
UNCITRAL – United Nations Commission on International Trade Law
[On to Part 1 – Cross-border insolvency concerning countries outside the UK]