The global community still lacks a regime for sovereign debt restructuring, something that could have come in handy with the eurozone crisis. There is increasing concern that international investment agreements may become a “court” for sovereign workouts. Indeed, investment treaties between Argentina and European nations were used by European investors in an attempt to serve as a forum for settling debt disputes. Are international investment agreements the appropriate place for the global community to resolve sovereign debt restructuring in the event of a financial crisis? It has been often overlooked that the definition of a covered investment within international trade and investment agreements often includes sovereign debt. In lieu of this, this chapter analyzes the extent to which investment provisions in various treaties may hinder the ability of nations and private creditors to comprehensively negotiate sovereign debt restructurings when a debtor nation has defaulted or is close to default on its government debt. It is found that the treatment of sovereign debt varies considerably in terms of strength and applicability across the spectrum of now thousands of trade and investment treaties in the world economy. It is also found that most treaties may restrict the ability to restructure debt in the wake of a financial crisis. These findings could undermine the ability of nations to recover from financial crises and could thus broaden the impact of such crises.