Settlement of Cross-Border Bankruptcy Disputes through Arbitration

In domestic law, when a merchant is unable to pay their debts and fulfill their financial obligations, they is declared bankrupt, and his assets are liquidated with special procedures. However, with the increasing globalization of trade and businesses often having assets spread across different countries, bankruptcy can have cross-border effects and dimensions. The resolution of disputes arising from cross-border bankruptcy is a significant issue in this context. Recruiting a descriptive-analytical method, this article examines the dispute resolution methods in this area, with an emphasis on arbitration, and the assumption that the arbitration agreement will remain in force even in the event of bankruptcy. Furthermore, the authors believe that the settlement of disputes arising from cross-border bankruptcy can also be achieved by concluding an arbitration agreement after the occurrence of bankruptcy. Arbitration, like other methods, has its advantages and disadvantages, and the article provides suggestions to address the challenges of this method.