Guides

Cross-border insolvency and the UNCITRAL Model Law

The UNCITRAL Model Law on Cross-Border Insolvency, adopted in 1997, gives countries a common framework for recognising foreign insolvency proceedings and cooperating across borders. The United States enacted it as Chapter 15 of the Bankruptcy Code.

• UNCITRAL adopted the Model Law on 30 May 1997 to help states equip their insolvency laws with a modern framework for cross-border cases. It promotes cooperation rather than unifying substantive insolvency law.¹
• The Model Law gives foreign representatives and creditors access to local courts and a simplified procedure for recognising foreign proceedings.¹
• A foreign proceeding is recognised as main where the debtor has its centre of main interests, or non-main where it has an establishment. Recognition of a main proceeding brings an automatic stay.^1,2
• Courts may cooperate and communicate directly with foreign courts and representatives, and concurrent proceedings can be coordinated.¹
• The United States added Chapter 15 in 2005, adopting the Model Law. A Chapter 15 case is generally ancillary to a primary proceeding brought in another country, usually the debtor's home country.²
• Examples include Chapter 15 filings for Brazil's Americanas in January 2023 and for UK-administered NMC Health in May 2020.^3,4

Sources

1. United Nations Commission on International Trade Law, UNCITRAL Model Law on Cross-Border Insolvency (1997)
2. Administrative Office of the US Courts, Chapter 15: Bankruptcy Basics
3. Americanas S.A. investor relations, Recuperação Judicial: Timeline (27 October 2026)
4. Wikipedia, NMC Health (27 October 2026)