The rapid growth of the digital economy has transformed global commerce, introducing new complexities in cross-border insolvencies. Traditional bankruptcy laws struggle to address the unique challenges of digital insolvencies, including jurisdictional conflicts, the treatment of digital assets, and coordination among stakeholders. This paper outlines the need for developing international policy guidelines to manage cross-border insolvencies in the digital economy. The proposed guidelines aim to harmonize laws and regulations, establish frameworks for recognizing and enforcing foreign insolvency proceedings, and protect digital assets and data. Implementation strategies include capacity building for legal professionals, mechanisms for dispute resolution, and ongoing monitoring of policy effectiveness. Case studies and best practices illustrate successful cross-border insolvency resolutions in the digital economy. The paper emphasizes the importance of international cooperation, clear legal frameworks, and innovative approaches to ensure fair and efficient resolution of insolvency cases. The development of international policy guidelines is crucial for promoting economic stability, facilitating global commerce, and safeguarding the interests of creditors and stakeholders in an interconnected world.The rapid growth of the digital economy has transformed global commerce, introducing new complexities in cross-border insolvencies. Traditional bankruptcy laws struggle to address the unique challenges of digital insolvencies, including jurisdictional conflicts, the treatment of digital assets, and coordination among stakeholders. This paper outlines the need for developing international policy guidelines to manage cross-border insolvencies in the digital economy. The proposed guidelines aim to harmonize laws and regulations, establish frameworks for recognizing and enforcing foreign insolvency proceedings, and protect digital assets and data. Implementation strategies include capacity building for legal professionals, mechanisms for dispute resolution, and ongoing monitoring of policy effectiveness. Case studies and best practices illustrate successful cross-border insolvency resolutions in the digital economy. The paper emphasizes the importance of international cooperation, clear legal frameworks, and innovative approaches to ensure fair and efficient resolution of insolvency cases. The development of international policy guidelines is crucial for promoting economic stability, facilitating global commerce, and safeguarding the interests of creditors and stakeholders in an interconnected world.