As global financial interconnectedness continues to evolve, the complexities of cross-border insolvency pose significant challenges for international finance. This research delves into the paradigms of universalism and territorialism, examining their roles in addressing financial distress across borders. While universalism prioritizes efficiency and fairness, it faces challenges in coordinating across jurisdictions. Territorialism, on the other hand, respects national sovereignty but risks fragmentation and unfair treatment of creditors. The study argues for a pragmatic approach that combines the strengths of both, emphasizing harmonization, cooperation, and streamlined processes for effective cross-border insolvency resolution. This research contributes to building global financial resilience by advocating for a balance between national interests and international collaboration.