Interplay Between Russian Bankruptcy and American Fraudulent Transfer Law

This article was published in the Russia and Eurasia Committee – Legislation Updates and News on the January-June 2016 edition.

Ms. Egan describes two major differences between Russian bankruptcy and American bankruptcy: (1) the initial treatment of creditors’ claims and the burden of proof to establish them; and (2) the ability of creditors to sue a debtor in foreign courts, despite the pendency of the Russian bankruptcy.  The implication is that a Russian bankruptcy will not prevent a creditor from recovering property of the debtor located in the United States.  In fact, as set forth below, the Russian bankruptcy can even help the creditor.

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