A History of the Transnational Aspects of United States Bankruptcy Law Prior to the Bankruptcy Reform Act of 1978

Abstract

Over the past two centuries, the courts of the United States have wrestled with the questions of what effect to give to foreign bankruptcies and whether or not to recognize the claims of foreign representatives. The reforms of the Bankruptcy Reform Act of 1978 provided a statutory framework to guide the courts in this difficult area involving transnational insolvency. This article examines the development in the major cases and scholarly works addressing the recognition of foreign bankruptcies and foreign representatives prior to the Bankruptcy Reform Act of 1978. Many of the principles developed over the past two centuries have been incorporated into the current U.S. statutory regime. These principles, as well as the cases in which they were originally espoused, are discussed in many of the recent judicial opinions resolving transnational insolvency issues.