Conflict of laws in the discharge of debts in bankruptcy

The discharge of scheduled but unsatisfied debts in bankruptcy proceedings involving individuals, whether or not subject to conditions or to suspension and to statutory exceptions,' is an element of bankruptcy law in Anglo-Saxon jurisdictions generally,^ and of many of the consumer insolvency laws introduced in Europe in the recent past. It is also inherent in arrangements and compositions, but these involve an element of consent arising from whatever voting procedures are applied. The question addressed in this article is under what circumstances a creditor whose claim against a debtor has been discharged in one jurisdiction can pursue the debtor on the same debt in another. Conflict of laws questions of bankruptcy discharge have arisen more frequently in recent years with an increase in cross-border portfolio investment^ and apparent efforts by foreign debtors to benefit from liberal US bankruptcy and exemption laws.* Whether a discharge will be recognised abroad may depend on the characterisation given to that discharge under the foreign legal system: i.e. whether it is considered to have worked an extinction of the debt as