Los Angeles has recently seen a spate of involuntary bankruptcies. What is an involuntary bankruptcy? An involuntary bankruptcy is a bankruptcy filed not by the debtor, but by the debtor’s creditors. Thus the “involuntary” bankruptcy.
When a bankruptcy is filed, whether it is Chapter 11 or Chapter 7, a number of different things occur. Probably the most important is that an “automatic stay” is implemented. What is the automatic stay?
Income tax treaties are good. As tax analyst Lee Sheppard noted, "a tax treaty announces to the world that a country is open to business investment." Tax lawyers are quite fond of tax treaties. Because they supersede local law, if a tax treaty applies, it is possible to give a client meaningful advice on the tax treatment of an investment in a particular country without becoming an expert on that country's internal tax rules or engaging local counsel.
