What is filing for bankruptcy?
Natural people in Colombia can solicit a process in the “regime of economic insolvency”, allowing people in economic difficulties and who are unable to pay creditors, proposing a payment agreement in order to fulfill their obligations. In other words, this process allows the person in debt to negotiate the payment of their debts and the due date again, as well as being eliminated from the negative reports in financial institutions.
Who does filing for bankruptcy cover?
Only natural people who aren’t working as merchants, or who incur in activity that is mercantile related.
- National ID Card.
- You should communicate with the notary before./li>
Frequently Asked Questions
What must a debtor do in order to initiate the bankruptcy process?
In order for a debtor to start the bankruptcy filing as a natural person, they must at least one of the following criteria:
- The person may not have fulfilled their obligations and be tardy with their debt in two or more obligations with different creditors.
- They must not have a minimum of two executive processes against them in their name (In these cases the value of the obligations must be at least 50% of the total of their debts and liabilities).
What happens when the request is accepted?
Creditors will be unable to initiate new executive processes, processes that were taking place by creditors will be suspended, interrupting the expiration and prescription of the action in relation to the recoverable debts.