Comparative Analysis of Bankruptcy Legal Provisions From Mexico and the United States: Which Legal System is More Attractive?ExpressO (2007)
AbstractThe objective of this article is to identify relevant procedural and substantive similarities and differences between Mexico’s and the United States bankruptcy laws that can help to determine which of the two insolvency legal systems is more or less attractive or successful. The comparative analysis is pertinent because the U.S. and Mexico are commercial partners under the North America Free Trade Agreement with a current overall economic exchange of over $300 billion dollars per year. Because of this strong commercial relationship it is common for U.S. companies to conduct part of their business in Mexico and have assets, suppliers, and employees within its territory. A significant economic reality connects both countries; thus, when a transnational company of either nation becomes financially distressed it is convenient that the insolvency laws of both countries are mutually recognized and that they are procedurally and substantively harmonized. Harmonization maximizes the value of the estate for all creditors, and simplifies procedural and substantive law. With harmonization cross-border investments would be more secure in the event that a company becomes economically distressed and has assets located in Mexico and the U.S.
Publication DateMay, 2007
Citation InformationComparative Analysis of Bankruptcy Legal Provisions From Mexico and the United States: Which Legal System is More Attractive?" Available at: http://works.bepress.com/jonatan_graham_canedo/1 This article may not be republished or reprinted in any form without the express written consent of the DePaul Business & Commercial Law Journal.