Bankruptcy Eligibility Rules Differ in Foreign Cases, Court Says

An Omani man failed to escape bankruptcy proceedings in the US after the Eleventh Circuit ruled traditional debtor eligibility standards don’t apply to Chapter 15, the section of bankruptcy law that handles foreign cases.

The US Court of Appeals for the Eleventh Circuit on Wednesday affirmed a Florida bankruptcy court’s decision that held court judgments related to Talal Qais Abdulmunem Al Zawawi’s involuntary UK bankruptcy proceeding can be recognized in the US.

Chapter 15 allows a foreign entity to obtain US recognition of its insolvency or restructuring plan that was granted by a foreign court. Al Zawawi argued that he ...