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In Bolivia, bankruptcy is legally referred to as 'Concurso de Credores'. If a debtor cannot meet their financial obligations, under Bolivian law, the debtor can voluntarily apply for bankruptcy, or a creditor may file to have the debtor declared bankrupt. The law stipulates, for both individuals and companies, the conditions under which bankruptcy can be declared and the proceedings consequently initiated.
Bankruptcy law is complicated and the process of declaring bankruptcy involves several detailed stages, including the evaluation of financial status, organizing and submitting required documentation and negotiating with creditors. A lawyer can guide you through this arduous process making it less complicated and ensuring your rights and interests are protected. Furthermore, they are trained to explore different options available to help manage your debt efficiently.
In Santa Cruz, Bolivia, bankruptcy proceedings are directed by the National Commercial Registry in line with the Bolivian Code of Commerce. Once bankruptcy is declared, all debtor's assets are inventoried for evaluation. Subsequently, these assets are sold and the money is used to cater to all creditors' claims. The debtor's ability to run their business operations during the process is subject to the discretion of the court. Moreover, prevention of preferential payments is a key aspect of Bolivian bankruptcy law. This is to ensure an equitable distribution of available resources.
A trustee is appointed to oversee the whole bankruptcy proceeding. They will take charge of the debtor's assets, sell them, and distribute the proceeds to the creditors according to the priorities set by law.
While most debts are included, not all will be. Debts such as alimony, child support, and certain types of taxes cannot be discharged through bankruptcy.
No, once bankruptcy has been declared, an automatic 'stay' is put in place prohibiting creditors from attempting to collect debts.
Bolivian law acknowledges certain exemptions but the protection of assets depends on multiple factors, including the type of asset and the type of bankruptcy. An attorney can guide you on how best to protect your assets.
Bankruptcy will negatively impact your credit score. However, it provides you with a fresh start towards rebuilding your financial status with time.
For individuals facing bankruptcy and in need of legal resources, the following may be useful:
If you need legal assistance, the first step is to consult with a legal expert who has experience in bankruptcy law in Santa Cruz. They will help you understand your financial situation and discuss the best possible options you have to proceed. It is important to discuss all potential implications, such as impact to credit score and future borrowing capabilities. It's never too late to seek legal advice when it comes to bankruptcy. Reach out today to get personalized and professional assistance.
