Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Restructuring and insolvency law in Girardot, Colombia is designed to help individuals and businesses manage financial difficulties, protect creditor and debtor rights, and facilitate the orderly resolution of insolvency situations. The process can involve court-supervised procedures or out-of-court agreements, depending on the specific case. In Colombia, insolvency is regulated by national laws, but the procedures are available locally in Girardot, ensuring residents and business owners can access the support they need during financial distress. These laws aim to preserve viable businesses, maximize asset value, and distribute debts equitably among creditors.
People often seek legal assistance in restructuring and insolvency for several reasons. If you or your business is unable to pay debts as they become due, legal advice can help you understand your options and rights. Business owners might need a lawyer to guide them through negotiating payment terms with creditors, filing for corporate restructuring, or liquidating assets in a manner consistent with the law. Individuals facing personal debt issues may also benefit from professional advice to protect assets and ensure compliance with statutory requirements. A lawyer can provide valuable support in avoiding legal pitfalls, representing your interests in court, and negotiating favorable settlements with creditors.
In Colombia, the main legal framework for restructuring and insolvency is covered by Law 1116 of 2006, commonly called the Insolvency Law. This law applies throughout the country, including Girardot, and establishes mechanisms for business reorganization and liquidation. For individuals who are not traders, Law 1564 of 2012 includes a process known as personal insolvency. The majority of cases go through the Superintendencia de Sociedades (Superintendency of Companies) or local civil courts, depending on the debtor's classification. The law encourages early restructuring, out-of-court settlements, and has specific requirements for asset disclosure, creditor notification, and preservation of business operations during proceedings. Local notaries and chambers of commerce in Girardot may also play a role in certain stages of the process.
Insolvency occurs when a person or company cannot meet financial obligations as they become due. Under Colombian law, a debtor is considered insolvent if they have failed to pay two or more obligations to two or more creditors for more than 90 days, or if there is an ongoing collection process.
Restructuring aims to allow a debtor to continue operating by reorganizing debts and obligations, often through negotiated agreements with creditors. Liquidation, on the other hand, involves selling off the debtor's assets to pay creditors and legally dissolving the entity.
Yes, non-trading individuals (personas naturales no comerciantes) can access personal insolvency proceedings under Law 1564 of 2012, allowing for a payment plan or asset liquidation to satisfy creditors.
Yes, out-of-court settlements and direct negotiations with creditors are encouraged. These can help avoid lengthy legal processes and often lead to mutually beneficial solutions.
Proceedings are generally managed by the Superintendency of Companies for businesses, and by local civil courts or notaries for personal insolvency cases.
The timeframe varies based on case complexity, but most restructuring proceedings can last from several months to over a year, depending on the number of creditors and assets involved.
In formal insolvency proceedings, your assets may be managed by an appointed administrator to preserve value and ensure transparent distribution among creditors according to legal priorities.
Most debts are included, but some, such as certain tax obligations, alimony, or child support, may have preferential treatment or may not be fully discharged through insolvency.
You may lose control over your assets, and your credit rating will likely be affected. However, you gain legal protections against creditor harassment and ongoing collection actions during the proceedings.
A lawyer can help you understand your rights, manage negotiations with creditors, ensure all legal requirements are met, prepare required documentation, represent you in court, and help maximize the benefits of the process.
For those seeking support or more information about restructuring and insolvency in Girardot, consider the following resources:
- Local Chamber of Commerce: For business registration, support, and insolvency guidance - Superintendencia de Sociedades: National authority overseeing business insolvency cases - Girardot Civil Courts: For individual insolvency or civil matters - Legal aid clinics and local universities: Often provide free or low-cost legal advice - Colombian Ministry of Justice: For updated laws and citizen support programs
If you are facing financial difficulties in Girardot and believe you may benefit from restructuring or insolvency processes, consider taking the following steps:
1. Gather all relevant financial documents, including a list of debts, assets, and contracts. 2. Consult with a local lawyer who specializes in restructuring and insolvency to understand your legal options. 3. Reach out to your creditors to discuss possible informal arrangements before entering formal proceedings. 4. Visit the local chamber of commerce or legal aid clinics for guidance or referrals. 5. Initiate the legal process if required, with the assistance of your lawyer, to protect your rights and navigate the procedures effectively.
Taking prompt action and seeking professional advice can make the difference between a successful restructuring and a challenging financial recovery. Do not hesitate to contact a qualified lawyer in Girardot to discuss your specific situation.
