International Business Law Advisor Insights on International Litigation & Transactions

Foreign Exemptions Should Apply in U.S. Bankruptcy Court.

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I represent an individual, Client X from Country Y.

In Country Y, Person X enjoys both a homestead and pension exemption under that country’s bankruptcy laws.

However, when Person Y, who is both a U.S. citizen and  citizen of Country X, files for bankruptcy in the U.S., the foreign bankruptcy exemptions will be held not to apply.

I think this is wrong for reasons I’ll explain in a follow-up post.

In the meantime, what do you think?