A foreign nonmain proceeding refers to a bankruptcy case that takes place outside the United States in a country where the debtor has a business presence, known as an establishment. This type of proceeding is distinct from a foreign main proceeding, which is initiated in the country where the debtor's center of main interests is located.
This term is primarily used in bankruptcy law, particularly in cross-border insolvency cases. It is relevant when a debtor has assets or operations in multiple countries and seeks to manage their bankruptcy proceedings in a way that respects the laws of each jurisdiction. Users may encounter this term when dealing with international business bankruptcy, and they can find useful legal templates on platforms like US Legal Forms to assist with necessary filings.
Here are a couple of examples of abatement:
For instance, if a company based in the United States has a subsidiary in Canada and files for bankruptcy in Canada, this may be considered a foreign nonmain proceeding for the U.S. parent company. (hypothetical example)
According to the Federal Bankruptcy Code, specifically 11 USCS § 1502, the definition of foreign nonmain proceeding is established. This statute provides the legal framework for understanding how such proceedings are recognized in the U.S.
| Term | Definition |
|---|---|
| Foreign Main Proceeding | A bankruptcy proceeding initiated in the country where the debtor's center of main interests is located. |
| Domestic Proceeding | A bankruptcy case that is filed within the United States, following U.S. bankruptcy laws. |
If you find yourself involved in a foreign nonmain proceeding, it's essential to understand your rights and obligations in both the foreign jurisdiction and the U.S. Consider consulting with a legal professional who specializes in international bankruptcy law. Additionally, you can explore US Legal Forms for templates that might help you navigate the necessary paperwork.
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A foreign main proceeding is initiated in the country where the debtor's center of main interests is located, while a foreign nonmain proceeding occurs in another country where the debtor has an establishment.