• U.S. Bankruptcy Code Amendments Affect Ancillary Proceedings: Chapter 15 to Replace Section 304
  • July 13, 2005 | Authors: Howard Seife; Francisco Vazquez
  • Law Firm: Chadbourne & Parke LLP - New York Office
  • On April 20, 2005, President George W. Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the "Reform Act") into law. A major component of the Reform Act is to add Chapter 15 to the U.S. Bankruptcy Code. Chapter 15, which is based upon the United Nations Commission for International Trade Law Model Law on Cross-Border Insolvency, will replace Section 304 of the U.S. Bankruptcy Code. It will become effective on October 17, 2005 and will apply to cases filed on or after that date. In many ways, Chapter 15 will significantly change U.S. law as currently reflected in Section 304.