Earlier we’ve blogged about the role of court interpreters in domestic bankruptcy proceedings. Clearly, the utilization of professional language translations and language interpreting services in international insolvency proceedings is poised for a more rapid growth. In 2005, in response to an increasing need for the courts to be able to deal with foreign representatives and foreign proceedings, Congress passed Chapter 15 of the United States Bankruptcy Code. The law was based on the Model Law of International Insolvency and is similar to the EU’s European Insolvency Regulation.
The purpose of Chapter 15 is to help create a unified insolvency mechanism and, thus, close a gap that created a high level of unpredictability regarding asset distribution in international insolvency proceedings.
Some of the main changes allowed for under Chapter 15 and the Model Law include:
- Greater access to insolvency proceedings for foreign representatives by granting procedural standing to initiate a local proceeding and by doing away with such diplomatic requirements as letters rogatory.
- Giving foreign creditors access to local courts in order to initiate or take part in an insolvency proceeding.
- Streamlined recognition of foreign proceedings by allowing local courts to grant temporary relief while recognition is pending. In order to be recognized, the foreign representative must provide certified document translations of the foreign decision or related evidence.
As is clear from all three of these areas, foreign language translation plays an important role in allowing for the efficiency that Chapter 15 and the Model Law call for. As creditors and representatives have easier access to the courts, more foreign proceedings will be brought – meaning there will be more foreign language documents and testimony needing translation. This is particularly true as, according to the Model Law, a need to have all the documents undergo a foreign language translation into the language of the enacting country is recognized.
Contact out legal translation firm to retain multilingual and bilingual document review licensed attorneys, JDs, LLMs for temporary on-site foreign language document review in Denver, Colorado, Washington, D.C., and anywhere in the U.S.