Practice area
Insolvency & Re-entrepreneurship
Liquidation and reorganization of companies and individuals under Law 20.720, so you can start again with legal backing.
What this area covers
- Voluntary liquidation proceedings for companies and individuals
- Debtor company reorganization
- Proof of claims (credit verification)
Frequently asked questions
What is Chilean Law 20.720 and who is it for?
It is the law that puts unpayable debt in order. It distinguishes between an individual debtor and a company, and opens two routes for each: renegotiation or liquidation. For an individual, renegotiation is an administrative, free-of-charge procedure before the Superintendency of Insolvency (Superir).
If I file under the law, do the collection agencies stop calling me?
From the moment the admissibility decision is published in the Boletín Concursal and until the procedure ends, creditors cannot start enforcement proceedings against you, and the agreed default interest stops accruing. To qualify you need at least two separate debts overdue by more than 90 calendar days, adding up to more than 80 UF.
Do I lose my home or my car if I declare insolvency?
Not automatically. Renegotiation exists precisely to reach an agreement without selling assets; liquidation, by contrast, realises the debtor's assets, except those the law declares non-attachable (art. 445 of the Code of Civil Procedure). Which route applies depends on the case, and it is worth deciding before a creditor decides for you.
This is general information about Chilean law, not advice on a specific case: deadlines and requirements change with the facts.
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Need counsel in Insolvency & Re-entrepreneurship?
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