'comity' in insolvency

In insolvency, 'comity' refers to the legal courtesy and mutual respect shown between courts of different jurisdictions. It encourages courts to recognize and uphold each other's insolvency proceedings, avoiding conflicting decisions and promoting cooperation. This principle helps ensure that a debtor’s assets are managed efficiently and fairly across borders, preventing multiple courts from taking contradictory actions and facilitating a smoother resolution for creditors and debtors involved in international insolvencies.