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In Mexico City, creditor law primarily revolves around collection of debts and bankruptcy cases. The primary piece of legislation that governs this area is the Federal Law of Commercial Insolvency (Ley Federal de Concursos Mercantiles – LFCM). This law covers the processes of bankruptcy and settlement negotiations between debtors and creditors. It provides both for reorganization of the debtor’s affairs where possible, and for liquidation where necessary. Creditors have the right to make claims against debtors both before litigation and in court during bankruptcy cases.
The legal nature of creditor laws in Mexico City can be nuanced and complex. You may need a lawyer if you're a creditor experiencing difficulties with collecting debts or if a debtor has filed for liquidation or bankruptcy maintenance. Additionally, you may need a lawyer to help you understand your rights and circumstances under Mexico's LFCM law. A lawyer can also assist you in court if a case arises, ensuring that your interests are effectively represented and defended.
Under the Federal Law of Commercial Insolvency in Mexico, a debtor may file for bankruptcy, and a conciliator is assigned to oversee the management of the debtor’s assets and negotiate with creditors. If a debtor fails to meet agreed terms, the process then enters the liquidation phase, where the debtor’s assets are sold. Conversely, creditors have the right to submit claims either individually or collectively. A recall action mechanism is in place to safeguard the interests of creditors, effectively annulling transactions made by the debtor during a certain period before the declaration of insolvency, which potentially harm their interests.
Creditors have the right to submit claims, vote on the debtor’s reorganization plan, and receive distributions from the debtor’s bankruptcy estate.
If a debtor fails to meet the agreed terms, the case moves into the liquidation phase. During this phase, the debtor's assets are sold under court order to repay the creditors.
A conciliator is an impartial third party selected by the court to facilitate negotiation between the debtor and creditors.
This is a legal instrument that can annul transactions made by the debtor during a certain period before the declaration of insolvency if they are detrimental to the creditors’ interests.
This can be achieved by contacting a local or international law firm in Mexico City that specializes in creditor law and commercial insolvency.
For creditors seeking legal advice, the Ministry of Economy's Federal Consumer Office website is a good starting point. The Mexican Bar Association is also a reliable resource for finding a lawyer who specializes in creditor law. For a more in-depth look at insolvency matters, it would be helpful to consult the Federal Law of Commercial Insolvency (LFCM).
If you need legal assistance with creditor matters in Mexico City, it’s recommended to reach out to a specialist in creditor law. They can provide you with crucial advice regarding your case, possible outcomes, and the best strategies for moving forward. Scheduling an initial consultation could be the first step towards resolving your dispute or addressing your legal rights and interests as a creditor.
