The proposal at vote, International Bankruptcy Protocol, is admittedly a dry piece of legislation setting up a system to protect both lenders and borrowers. Bankruptcy is a legal process whereby a person who is unable to pay their debts receive relief from these financial obligations. It requires, specifically, that nations ‘share’ jurisdiction and bankruptcy law in very limited situations so that a debtor who has assets spread across multiple jurisdictions cannot hide their money from creditors. It is, therefore, an issue requiring World Assembly involvement.

But the proposal does not just protect creditors, as member states also give debtors protections from collection efforts while assets are being managed during bankruptcy. The proposal also helps cut down on abuse by foreign laws by letting states make accommodations to prevent abuse.

With commerce spread across nations, businesses and individuals often find it necessary to restructure and discharge debts. International Bankruptcy Protocol manages to do this in a way that is equitable to all parties and ensures that member states do not spend exorbitant funds accommodating dozens of proceedings for the same parties across dozens of nations. The legislation at-vote is well-written and deals with this issue in a way that respects the different financial systems employed by the multitude of member states affected. Even if your nation does not have bankruptcy law, this protects the individuals and parties without requiring that you change your laws. Despite the complicated subject, the proposal addresses the competing concerns neatly.

The WA Office recommends a vote FOR ‘International Bankruptcy Protocol.’