Best Bankruptcy Lawyers in Valledupar

About Bankruptcy Law in Valledupar, Colombia

Bankruptcy in Valledupar, Colombia, like many other parts of the country, works under the law no. 1116 of 2006 which allows entities or individuals to declare insolvency when they are unable to meet their financial obligations. This is done by filing a request to the court to initiate an insolvency proceeding, which can either be reorganization or liquidation. Reorganization involves creating a plan to repay creditors while keeping the business operation, while liquidation involves selling-off all the company's assets to pay off the debts.

Why You May Need a Lawyer

The process of declaring bankruptcy is complex and complicated. There are many legal formalities that need to be fulfilled and many important financial decisions that need to be made. Individuals often require legal help to ensure that they comply with all legal requirements as well as to protect their rights and assets. A lawyer will be able to provide advice on whether filing for bankruptcy is the best solution, what kind of bankruptcy to file for, and how to navigate the whole process.

Local Laws Overview

According to the bankruptcy law in Colombia, a debtor must file an application to declare bankruptcy at a communal court, demonstrating insolvency and willingness to resolve their debt obligations. All legal actions against the debtor are temporarily halted once the application is accepted. There are strict standards set for the reorganization plan including how long the payment plan will last, the amount each creditor will receive, and the order of payment. The creditors' assembly must vote to approve the plan. If the plan is rejected, or if the debtor cannot fulfill their obligations, the company might be put in liquidation.

Frequently Asked Questions

How can one avoid bankruptcy?

It depends on individual situations. However, measures like debt management, negotiation with creditors, and consolidation of loans can potentially help avoid bankruptcy.

What is the impact of bankruptcy on future credit?

Bankruptcies remain on your credit report for 7-10 years, which can make getting loans or credit very difficult in the future. However, the impact lessens over time.

What happens to personal belongings in case of a bankruptcy?

In some cases, personal assets may be sold to repay the debt. However, certain essential belongings like living essentials, and tools of profession may be exempt.

What debts are non-dischargeable in bankruptcy?

Certain debts like alimony, child support, certain taxes, and student loans are generally non-dischargeable in bankruptcy.

Are all bankruptcies public?

Yes, bankruptcy filings are public records which can be accessed by anyone.

Additional Resources

The Colombian Government's official legal code website provides information about bankruptcy laws. Local non-profit organisations and legal aid clinics may also provide free or affordable consultations. The Colombian Bar Association's Lawyer Referral Service can provide referrals to qualified bankruptcy lawyers.

Next Steps

If you believe you need to declare bankruptcy, the first step is to consult with a qualified bankruptcy lawyer. The lawyer can provide advice tailored to your unique situation and can provide guidance throughout the entire process. It's essential to collect all financial documents, credit reports, and asset listings to assist your lawyer in evaluating your case.