Conflicts of Jurisdiction in Cross-Border Bankruptcy

Currently, the phenomenon of globalization of cross-border insolvency cases is actively developing in Russia. The problem of cross-border bankruptcies is a common object of foreign scientific research, and has recently attracted the attention of domestic scientists, despite the fact that for a long time for internal rule of law it was poorly understood and was considered unpromising for practical application. There is an opinion that “the problem of cross-border insolvency is one of the most pressing and complex legal phenomena that entail extremely important economic and legal consequences”. But the problem of conflicts of jurisdiction in cross-border bankruptcy is still not resolved. The problems arising from cross-border insolvency are primarily associated with the incompatibility of national systems of bankruptcy laws with the trends of international economic relations and, as a result, with the heterogeneous approach of different states to legal regulation of cross-border ones. The unresolved conflict of jurisdictions in a particular case can lead to various negative consequences, from increasing legal costs to concurrent proceedings in two or more countries, which significantly reduces the economic efficiency of bankruptcies. As a result, the legal community has the task to solve this problem. In turn, in the present paperwork a comprehensive analysis of the issues of conflict of jurisdiction in cross-border bankruptcy is carried out, aspects of the phenomenon are considered in their versatility and approaches and concepts important for determining its nature and legal characteristics are summarized.