22 of October of 2020
New Decree 1332 on bankruptcy proceedings

On October the 6th, 2020, the National Government issued Legislative Decree 1332 of 2020 “which regulated the Legislative Decree 1332 of 2020 -which adopted special measures regarding bankruptcy processes-”. The decree included special rules applicable to those proceedings. The main rules are:

1. Subjects and process coordination: All debtors whose assets are equal to or less than 5,000 SMMLV must submit their insolvency requests under the Decree 772’s proceedings. If compatible, those proceedings may be coordinated with Law 1116’s proceedings
2. The submitting of objections must be done before the judge of the bankruptcy to be included in the proceedings’ file.
3. The designation of the instigator of bankruptcy is made by the bankruptcy’s judge. Said instigator must present a business plan and agreement proposal at the alternative settlement meeting.
4. Debtors whose activity is the construction of real estate for housing must include the information indicated in the decree since the beginning of the proceedings.
5. Judicial liens as security interest: General rules are modified.
6. Expiration of individual collection actions: It is specified how Article 6 of the Decree 772 shall operate.
7. The liquidator may present an award proposal directly, without creditors voting.

See full text of Decree 1332 of 2020



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