Principle of pure universality in international bankruptcy

Abstract

In this article the author analyzes the principle of pure universality in international bankruptcy law. This is one of the most important theories in the field of cross-border insolvency, that came up as an answer to the dominance of principle of territoriality in national bankruptcy laws. In the first part of the article, the author determines the meaning and basic characteristics of the principle of pure universality. Afterwards, the most important advantages of this principle have been elaborated. They are supposed to be the justification for its introduction. Next part of the article points out to the most significant limitations of this principle, because potencial implementation must bear them in mind. In the last part of this article the author defines the basic conditions for the application of principle of pure universality. The author of this article argumented in favour of this principle, in spite of current domination of other theories.

Keywords

• principle of universality
• principle of territoriality
• pure universality
• international bankruptcy
• lex fori concursus