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Washington DC Bankruptcy/Finance Lawyer - Trends
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Involuntary filings under Section 303 of the United States Bankruptcy Code (the Code) by creditors trying to force foreign corporate debtors into US bankruptcy proceedings have correspondingly increased. 1 Often, these involuntary filings occur when foreign insolvency proceedings are pending, and the court may thus need to decide whether it can exercise jurisdiction. Thus, courts are required to determine whether to abstain from exercising jurisdiction over an involuntary petition, either by suspension or dismissal, and cede jurisdiction to a foreign court of insolvency pursuant to section 305(a)(1) of the Code. 2 Section ...
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