the pandemic for COVID-19 has had a strong impact on many Chileans. The stagnation of the economy, the loss of jobs, the reduction of family income and the drop in sales or closure of micro, small and medium-sized companies, have caused many families to have great difficulties in maintaining financial stability and meeting with payments of debts or services.
In this situation, Eva Orellanaacademic of the career of ICommercial Engineering from Universidad de Las AméricasViña del Mar Headquarters, Doctor in Organizational Development, comments that in our country the Law of Reorganization and Liquidation of Companies and Persons (Law 20,720), formerly known as the «Bankruptcy Law», is in force, which can be a valid alternative for those who are experiencing difficult times in the financial field, as it allows people and companies that are in an aggravated financial situation to face this crisis by filing for bankruptcy.
The academic explains that this law allows a natural person to declare bankruptcy by submitting to one of two procedures to get out of debt: through a renegotiation or through a liquidation.
“The renegotiation procedure allows renegotiation with the companies to which it is owed, for example, achieving new payment terms, lowering rates and even canceling interest on the debt«.
«For its part, the liquidation procedure refers to the auction of a person’s assets and with the proceeds the debts will be paid, regardless of whether the usefulness of these assets is not enough to pay all their debts, since the process ends there.”, details Eva Orellana.
Eva Orellana, academic of the Commercial Engineering career at the University of the Americas, Viña del Mar, Doctor in Organizational Development
In addition, the expert says that the best option will depend on each situation, since renegotiation is designed for those people who can pay their debt, but not under current conditions, while liquidation is recommended for people whose economic situation makes it impossible to pay their debts. accounts.
The professional states that to submit to a renegotiation process you must have at least two debts, which together must add up to a minimum of 80 development units (approximately 2 million 300 thousand pesos). For the liquidation process, you must have at least one delinquent debt, but you will need a lawyer, since it is a legal process that is carried out in court.
“If a person meets the aforementioned requirements, in order to file for bankruptcy, they must go to the Superintendence of Insolvency and Re-entry. There you must make a request to renegotiate his debts or liquidate his assets«.
«First, you will be asked for the list of debts, list of assets, lists of income, among others. After reviewing your data, you will be informed if this request is accepted or rejected. If it is rejected, you will not be able to continue since you do not meet the necessary requirements, but if it is approved, you will be summoned to a meeting to see how you will pay your debt or who will auction your assets.”, says the academic.
“A high percentage of debtors who avail themselves of this law manage to reach a renegotiation agreement. The main benefit is that the person is left with no arrears and no negative business history, since all his debts and business history are eliminated. You will no longer owe any creditor and you can start all over again, with no charges”, concludes the professional.