COMPETITION PROCEDURE: LAW 20,720.
In the year 2014, dictated a new Law number 20.720, which comes in replacing what in the past called the Law of failure, in which, establish new procedures, those that generate greater efficiency and agility in the judicial and preventive processing when the company has ceased in the payments to his creditors, generating like this greater confidence and security, so much to the creditors like the debtors.
Our legislation signals 3 types of procedures, which invite to know.
1.- COMPULSORY PROCEDURE OF REORGANIZATION: It is a judicial procedure, whose purpose is the restructuring of the liabilities and assets of the Debtor Company, when this is viable. Only the Debtor Companies can submit to this procedure, which are:
a) Legal persons under private law, with or without profit.
b) Natural persons contributing to First Category, and Second Category.
c) Natural persons taxpayers of article 42 N ° 2 of the Law on Income Tax.
The main effect that this type of resolution produces is financial protection: which consists of that period of time between the issuance of the reorganization resolution and the reorganization agreement granted to the Debtor Company submitted to the Bankruptcy Reorganization Procedure, during which his liquidation can not be requested or declared, nor initiated against him by executive judgments, executions of any kind or restitutions in lease trials. In addition, all contracts signed by the debtor will maintain their validity and payment terms. Consequently, they can not be terminated unilaterally in advance, their compliance must be demanded in advance or the contracted guarantees become effective, invoking as grounds for the initiation of a reorganization proceeding.
2.-COMPULSORY PROCEDURE OF FORCED LIQUIDATION OF THE DEBT COMPANY : It is a judicial procedure whose objective is the fast and efficient liquidation of the assets of a debtor company, so that it can pay to those who owe them (its creditors), when a company is sued by a creditor.
They are Debit Companies:
a) Legal persons under private law, with or without profit.
b) Natural persons contributing to First Category, and Second Category.
c) Natural persons taxpayers of article 42 N ° 2 of the Law on Income Tax.
The effects of liquidation resolution are the following:
Once the Liquidation Resolution of the Debtor Company has been issued, the following effects, among others, will occur in relation to the debtor and his assets:
a) The Debtor Company will be inhibited from the administration of all its present assets, with the exception of those that the law declares can not be seized. Your administration will go to the Liquidator. Consequently, subsequent acts and contracts that the debtor executes or executes in relation to these assets will be null.
b) The Debtor Company will lose the power to dispose of its assets and fruits, current and future.
c) The Debtor Company must appear in court, represented by the Liquidator.
d) The Debtor Company will be able to interpose by itself, the actions referred to its person and that have for object inherent rights to her. You will not be deprived of the exercise of your civil rights, nor will you be subject to special incapacities except in the cases expressly determined by law.
3.-COMPULSORY PROCEDURE OF VOLUNTARY LIQUIDATION: It is a judicial procedure whose objective is the fast and efficient liquidation of the assets of a debtor company, so that it can pay those who owe them (its creditors), when this is requested directly by the debtor company.
Important: Individuals can also request voluntary liquidation.
They are debtors:
a) Natural person subject to work contract.
b) Natural person subject of credit (homeowners, students, retirees, etc).
They are Debit Companies:
a) Legal persons under private law, with or without profit.
b) Natural Persons Contributors of First Category, and Second Category
c) Natural persons who are taxpayers of Article 42 No. 2 of the Law on Income Tax, this is natural persons who practice the free exercise of the profession.
The effects of liquidation resolution are the following:
Once the Liquidation Resolution of the Debtor Company has been issued, the following effects, among others, will occur in relation to the debtor and his assets:
a)The Debtor Company will be inhibited from the administration of all its present assets, with the exception of those that the law declares can not be seized. Your administration will go to the Liquidator. Consequently, subsequent acts and contracts that the debtor executes or executes in relation to these assets will be null.
b) The Debtor Company will lose the power to dispose of its assets and fruits, current and future.
c) The Debtor Company must appear in court, represented by the Liquidator.
d) The Debtor Company will be able to interpose by itself, the actions referred to its person and that have for object inherent rights to her. You will not be deprived of the exercise of your civil rights, nor will you be subject to special incapacities except in the cases expressly determined by law.
