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Bankruptcy law in Chihuahua City, Mexico, falls under the jurisdiction of the Federal Bankruptcy Law or Ley de Concursos Mercantiles. The law guides the process for a debtor, whether an individual or a business, that is unable to met their financial obligations. The law aims to have an orderly and fair distribution of the debtor's assets among the creditors. Legal terminology used in Mexico to refer to bankruptcy includes "Concurso Mercantil" and "Insolvencia".
Bankruptcy procedures are complex. One may require the assistance of a lawyer for various reasons, including: ensuring the filing process is correctly executed, negotiating with creditors, understanding the implications of bankruptcy, and receiving guidance throughout the process. A lawyer will also help you with the court proceedings that could prove to be quite extensive and complicated if tackled alone.
The Bankruptcy law in Mexico provides for a reorganization process, commonly known as Concurso Mercantile. This is initiated by either the debtor or the creditors. It is aimed at allowing the business to continue operations while repaying the creditors in an orderly fashion. In the event reorganization is unsuccessful, the company's assets are liquidated to pay off the debt. It's also important to note that bankruptcy declarations can affect a person's credit rating for a significant period. Therefore, it's advisable to refer to a lawyer to avoid unnecessary complications and ensure all alternatives have been considered.
Yes, both individuals and companies can file for bankruptcy in Chihuahua City. The process can, however, vary between the two.
Bankruptcy proceedings in Mexico can take up to two to four years, though this depends greatly on the specifics of each case.
Declaring bankruptcy impacts a person's financial status significantly. They might face difficulty in securing new credit, personal assets might be liquidated, and the declaration could remain part of the credit history for a period of 6 to 10 years.
Under Mexican law, it is not easy to have bankruptcy expunged from your credit report before the 6 to 10 year timeline. However, credit ratings can slowly been improved with regular and timely payments of new debts.
Not all debts are written off after declaring bankruptcy. Generally, secured debts and obligations such as child support, alimony, and certain taxes cannot be discharged through bankruptcy.
The Federal Institute of Specialists in Bankruptcy Proceedings (IFECOM) is the government body overseeing most bankruptcy proceedings in Mexico. IFECOM's website (ifecom.gob.mx) offers a variety of resources and information about the bankruptcy process. The National Bar Association of Mexico (Barra Mexicana Colegio de Abogados) also offers resources that can assist in finding a qualified lawyer in Chihuahua City.
If you or your business is facing financial trouble and considering bankruptcy, the first step is to consult with a lawyer specializing in bankruptcy law. A lawyer can evaluate your financial situation, explain the consequences, and guide you through the process or offer alternatives to consider. Remember, the bankruptcy process is complex and legally binding hence, proper legal advice is essential in these situations.
