The discharge of scheduled but unsatisfied debts in bankruptcy proceedings involving individuals, whether or not subject to conditions or to suspension and to statutory exceptions,' is an element of bankruptcy law in Anglo-Saxon jurisdictions generally,^ and of many of the consumer insolvency laws introduced in Europe in the recent past. It is also inherent in arrangements and compositions, but these involve an element of consent arising from whatever voting procedures are applied. The question addressed in this article is under what circumstances a creditor whose claim against a debtor has been discharged in one jurisdiction can pursue the debtor on the same debt in another. Conflict of laws questions of bankruptcy discharge have arisen more frequently in recent years with an increase in cross-border portfolio investment^ and apparent efforts by foreign debtors to benefit from liberal US bankruptcy and exemption laws.* Whether a discharge will be recognised abroad may depend on the characterisation given to that discharge under the foreign legal system: i.e. whether it is considered to have worked an extinction of the debt as

https://onlinelibrary.wiley.com/doi/pdf/10.1002/iir.3940050102

Conflict of laws in the discharge of debts in bankruptcy

Pankrotimenetluse algatamine ja pankroti väljakuulutamine

Cross-Border Insolvency: Comparative Dimensions, The Aberystwyth Insolvency Papers ; edited by Ian F. Fletcher; United Kingdom Comparative Law Series, Volume 12, United Kingdom National Committee of Comparative Law, London1990, xxiv + 314 pp..

The relevance of the research is due to the presence of a number of problems in the framework of the methodology of cross-border insolvency. The article focuses on the need to disclose information about the obligations of the group and affiliated organizations in the framework of the cross-border insolvency procedure, to exclude the possibility of manipulation and abuse of jurisdictions in determining the center of primary interest (COMI-standard) when declaring members of a group or interdependent persons bankrupt. The main approach is to change the principle of limited liability, the ability to open the main and minor parallel (auxiliary) proceedings in a bankruptcy case based on the criterion of incorporation of controlling persons, expanding the concept of controlled debt in order to prevent the initiation of fictitious and deliberate bankruptcies and damage to the economic system of the host country. The materials of the article are of practical value for public authorities that control the cases of cross-border insolvency (bankruptcy), practicing experts in the field of bankruptcy of members of a group of legal entities that have branches and separate subdivisions in two or more receiving countries. At the heart of a research of the procedure of cross-border insolvency, the following methods are used: ▪ theoretical (collecting basic data); ▪ statistical (collecting, the report and the analysis of data, processing of the obtained data); empirical (studying of the national and international legislative standards regulating holding procedures of bankruptcy and cross-border bankruptcy, standard documentation; observation). © 2019 Published by Future Academy www.FutureAcademy.org.UK

Michael Bogdan

Papers

International Bankruptcy Law in Scandinavia