Indebted?: How can I apply the insolvency law

Indebted?: How can I apply the insolvency law
Indebted?: How can I apply the insolvency law

In a still complicated economic scenarioa growing number of Colombians hhas chosen to declare bankruptcy to protect your assets. According to recent information from Insolvency Colombia and IFI Financial Intelligence, More than 2,000 Colombian citizens have made this decision so far in 2024.

The figure represents a notable increase compared to the previous year, when approximately 6,470 individuals faced a similar situation in 2023. These data reveal a worrying trend that indicates an increase in financial difficulties among the population.

“The fact that natural person insolvency requests increase can be positive, since it means that more and more Colombians take advantage of the rule and thus obtain a second opportunity to reorganize their financial affairs,” said Luis Benítez, director of Insolvency. .

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What is the Insolvency Law?

This regulation offers a legal framework so that both natural and legal persons can reorganize their debts and avoid the loss of property, has been used by many as a resource in the midst of these economic adversities.

The increase in insolvency filings has not gone unnoticed. According to statistics provided by the Ministry of Justicenotaries and clients of the entity, the insolvency applications experienced an increase in 48% in 2023 compared to the previous year.

This phenomenon reflects the persistent challenges that Colombians face in the midst of the economic uncertainty and the financial difficulties exacerbated by the pandemic and other factors. As more people turn to Insolvency Law for financial protection, there is a clear need for policies and measures that address the underlying causes of these problems and provide adequate support to those struggling to maintain their financial stability.

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In case the negotiation request is acceptedjudicial proceedings related to the cdebt settlement and proceed to comply with the new agreement.

It is crucial to strictly comply with the terms of the agreement, as failure to comply can lead to revocation of the conciliation process. In such a case, the matter will be submitted to a judge for decision, which could result in the liquidation of the debtor’s assets to satisfy outstanding debts. Those considering this alternative must meet certain specific requirements.

What are the requirements to benefit from the Insolvency Law?

To access the benefits contemplated in this linsolvency legislation economic, the natural individual must find himself in a situation inability to paywhich implies havingr two or more outstanding debts, either as main debtor or as co-debtor.

Likewise, it is necessary to have incurred the payment slip of at least two financial obligations and have failed to pay for a period of more than 90 days, or face ongoing legal proceedings, such as lawsuits or foreclosures.

Steps to benefit from the Insolvency Law

To begin the process of applying for economic insolvency policies, the individual must follow a series of steps and present the required documentation at an authorized conciliation center. These documents include:

  1. Causal Report of Cessation of Payments: Detailing the specific reasons that have led the individual to the default situation.
  2. Debt Negotiation Proposal: A clear, precise and objective proposal for the negotiation of outstanding debts.
  3. Complete List of Creditors: Including name, address, email address, amount of debt, capital and interest values, nature of the credits, interest rates, date of granting the credit and maturity. Additionally, details of co-signers, supported by documents, must be provided.
  4. Detailed Inventory of Assets: Including those in possession abroad. Any encumbrance, impact or precautionary measure that falls on them must be indicated, as well as specify which ones are considered family housing and which ones are part of the non-seizable family assets.
  5. Information on Judicial and Administrative Processes: Detailing any judicial or administrative process related to property matters, both initiated by the debtor and those carried out against him.
  6. Certification of income: Accompanied by information on the existence or not of a marital or patrimonial partnership, supported by the corresponding documentation.
  7. Food Obligations: A detailed list of the support obligations owed by the debtor, including the value and the corresponding beneficiaries.
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