Best Bankruptcy & Debt Lawyers in Pasto

About Bankruptcy & Debt Law in Pasto, Colombia

Bankruptcy and debt law in Pasto, Colombia, is designed to provide protection and legal remedies for both creditors and individuals or businesses facing financial difficulties. Under Colombian law, the legal system aims to balance the rights of those unable to meet their debt obligations with the interests and rights of creditors. Through formal insolvency and restructuring processes, individuals and companies in Pasto have avenues to resolve debt challenges, negotiate payment plans, and, in some instances, obtain relief from excessive or unmanageable liabilities.

Why You May Need a Lawyer

Facing financial stress or overwhelming debt can be daunting. Legal advice may be essential for several reasons, such as:

• Receiving constant calls or threats from creditors or collection agencies.
• Having wages or bank accounts attached due to unpaid debts.
• Risking the loss of your home or other essential assets through foreclosure or repossession.
• Managing debts following a business downturn or closure.
• Needing to understand the implications of insolvency or bankruptcy under Colombian law.
• Negotiating restructuring agreements with creditors to avoid bankruptcy.
• Defending against lawsuits filed by creditors for unpaid debts.
• Ensuring that your rights are respected throughout the debt collection or insolvency process.

Local Laws Overview

In Colombia, and specifically in Pasto, bankruptcy and debt matters are primarily governed by Law 1116 of 2006 (Ley 1116 de 2006) which covers insolvency proceedings for companies and individuals engaged in commercial activities. There are also specific procedures for personal insolvency for non-entrepreneurs under Law 1564 of 2012, known as insolvencia de persona natural no comerciante. Key aspects include:

• The right to file for insolvency protection if you are unable to meet your financial obligations.
• Initiation of negotiation proceedings with creditors under the supervision of a court or Superintendencia de Sociedades (Superintendency of Companies).
• Possible restructuring of payment plans, granting debtors the chance to propose realistic payment terms.
• Temporary suspension of collection activities and enforcement actions once insolvency proceedings start.
• Rules for the liquidation of assets if no viable restructuring can be reached.
• Protections against certain aggressive collection practices once proceedings are formally underway.

Frequently Asked Questions

What is insolvencia de persona natural no comerciante?

This is a legal insolvency process for individuals who are not engaged in commercial activities but are unable to pay their debts. It allows them to negotiate payment with creditors under judicial oversight and may lead to a payment agreement or, if unsuccessful, liquidation of assets.

Can businesses in Pasto file for bankruptcy?

Yes, businesses ranging from small enterprises to large corporations in Pasto can request insolvency proceedings under Law 1116 of 2006 if they cannot pay their debts on time.

Are all debts covered in a bankruptcy proceeding?

Most types of unsecured and secured debts are included, but some obligations, such as child support or certain taxes, may not be discharged even in bankruptcy.

What happens to my property if I file for insolvency?

Depending on the process, some or all of your assets may be liquidated to pay creditors. However, certain essential assets may be protected under Colombian law.

Will filing for bankruptcy stop creditors from harassing me?

Yes, starting an insolvency proceeding generally triggers an automatic suspension (stay) of collection actions, including lawsuits, wage attachments, and foreclosures.

Can I negotiate directly with creditors outside of court?

Yes, and sometimes it is possible to reach informal payment agreements. However, for legal protection and binding agreements, insolvency proceedings are recommended.

What documents are needed to start an insolvency process?

You will typically need identification, a list of assets and liabilities, supporting documents for your debts, proof of income, and other financial information.

How long does the insolvency process take?

The timeframe varies depending on complexity, the number of creditors involved, and whether a restructuring or liquidation process is chosen. It can range from several months to over a year.

Do I need a lawyer to file for bankruptcy or insolvency in Pasto?

While not always legally required, having a lawyer ensures your rights are protected and helps you navigate complex legal procedures.

How does bankruptcy affect my credit record in Colombia?

Filing for insolvency or bankruptcy will appear on your credit record and may affect your ability to obtain credit in the future. This impact usually lasts for a number of years.

Additional Resources

Several agencies and organizations can assist those dealing with bankruptcy and debt issues in Pasto:

• Superintendencia de Sociedades: The national entity overseeing corporate insolvency and business bankruptcy procedures.
• Chamber of Commerce of Pasto: Assistance for businesses in financial difficulty, guidance on legal procedures, and access to official forms.
• Defensoría del Pueblo - Regional Pasto: Offers legal orientation services for vulnerable individuals facing debt problems.
• Legal clinics of local universities: Some universities in Pasto offer free or low-cost legal aid for residents.
• Financial consumer protection agencies (Superintendencia Financiera): Help address unfair debt collection or abusive credit practices.

Next Steps

If you are struggling with debt or considering bankruptcy in Pasto, Colombia, follow these steps:

• Gather all documentation related to your debts, assets, income, and expenses.
• Evaluate your situation and consider if an informal payment plan could resolve your issues.
• Consult with a qualified bankruptcy and debt lawyer in Pasto to assess your legal options and rights.
• If appropriate, initiate insolvency proceedings with help from your lawyer and the relevant local authorities.
• Attend all meetings, court hearings, and comply with requirements to ensure the best possible outcome.
• Reach out to listed resources for additional support, information, or legal aid.