Active salary or bank account garnishment
Admission to insolvency immediately suspends ongoing garnishments, returning control of your cash flow from day one.
Personal Insolvency
Legal procedure under Law 1564 of 2012 to reorganize all your debts in a single proceeding, with immediate suspension of garnishments, default interest, and collection processes.
Contact UsPersonal Insolvency
The insolvency regime for non-merchant natural persons is regulated by articles 531 to 576 of Law 1564 of 2012 (General Code of Procedure) and Decree 2677 of 2012. It is the most powerful legal tool available to an over-indebted Colombian to reorganize all obligations in a single proceeding before a conciliation center or authorized notary.
To access the procedure, the debtor must prove cessation of payments: default for more than 90 days on two or more obligations to two or more creditors, or having two or more executive processes pending. Once admitted, garnishments, default interest, and all ongoing collection processes are immediately suspended — providing immediate, verifiable relief.
The resulting payment plan can extend up to five years (longer for mortgage credits) and must be approved by a qualified majority of creditors. Our lawyers handle the entire process: preparing the application, projecting the plan, representing you at the conciliation hearing, handling matters before the Civil Municipal Judge when required, and following up on compliance.
Problems We Solve
Inability to negotiate with each creditor separately
When there are 4, 5, or more creditors, negotiating one by one is exhausting and costly. Insolvency forces all of them to the same table.
Default interest growing faster than your payment capacity
Admission freezes default interest and allows building a plan based on your real capacity, not impossible projections.
Multiple executive proceedings across different courts
The insolvency procedure consolidates the handling of all pending executive processes against you, avoiding scattered defenses.
Our Approach
1
Cessation of Payments Diagnosis
We verify that the legal requirements of article 538 of Law 1564 are met and project the viability of the payment plan before initiating the procedure.
2
Preparation and Filing
We prepare a detailed list of assets, debts, creditors, and payment capacity. We file the application before the conciliation center or notary with jurisdiction in your domicile.
3
Hearing Representation and Compliance
We represent you at the negotiation hearing with all creditors, support the proposed plan, and once approved, accompany you in compliance throughout the agreement's duration.
Frequently Asked Questions
How long does the insolvency procedure take?
The negotiation phase lasts up to 60 days from admission, extendable by an additional 30 days. The approved payment plan can extend up to 5 years (longer for mortgages). From admission to plan approval typically takes 3 to 4 months.
Do I lose my assets in the procedure?
Not necessarily. Insolvency for non-merchant natural persons seeks an agreement, not liquidation. Only if negotiation fails or the agreement is breached does patrimonial liquidation proceed. Even then, certain assets are unattachable by law (part of salary, family dwelling under conditions, work tools).
Who can use this procedure?
Non-merchant natural persons in cessation of payments — those defaulting for more than 90 days on two or more obligations to two or more creditors, or with two or more executive processes pending. It does not apply to merchants (they go through Law 1116 of 2006).
Can I start another insolvency later?
The regime requires at least six years to pass from the completion or failure of the previous procedure before starting a new one. That is why it is critical that the first procedure be designed with a realistic plan that can actually be met.
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