Cayman Island's Bankruptcy Law

Filing for bankruptcy differs from country to country, as the nations' federal laws may change. Cayman Islands is no different, relying on its federal laws to govern the bankruptcy law.

British-Dependent Territory

The Cayman Islands is a British-dependent territory, which means that Caymanian bankruptcy law is synonymous with British bankruptcy law.

Individual Voluntary Arrangement

An individual voluntary arrangement is often the first step before bankruptcy under British law. An IVA is when the debtor contacts each of creditors seeking action against him and offers a settlement.

Corporate Bankruptcy

British law often requires that all assets be liquidated when a corporation files for bankruptcy.

Individual Bankruptcy

There are several different things to consider when filing for bankruptcy, such as: it will remove all pre-existing debt, oftentimes the court will allow the debtor to keep her car, the debtor may lose her assets, and the debtor may not obtain a credit for over a certain amount without telling the creditor that she previously filed for bankruptcy.

References

• The Economist: Out of Pocket; Europe's Flawed Insolvency Regimes Will Face a Severe Test in 2009
• Clear Insolvency: What is an IVA?
• U.S. Department of State: Cayman Islands Country Specific Information
• Clear Insolvency: Bankruptcy Pros and Cons