Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Mexicali, Mexico Attorneys in related practice areas.
Bankruptcy and debt law in Mexicali, Mexico is governed by both federal laws and local regulations. In Mexico, bankruptcy is not a punishment but a mechanism that allows for the restructuring of a business's debt or its liquidation. The written law is known as the Ley de Concursos Mercantiles, or the Law of Commercial Competition, and aims to maintain the debtor's business operations while they repay their debts.
If you're struggling to manage your debts, dealing with foreclosure, or considering bankruptcy, a legal professional can be incredibly beneficial. Lawyers specialized in debt and bankruptcy can help you understand your options, guide you through the process, engage in negotiations with creditors, and protect you from litigation. Furthermore, bankruptcy procedures can be complex and involve numerous forms and legal requirements that could be overwhelming or easily misunderstood without professional assistance.
In Mexicali, as in the rest of Mexico, a person or entity can declare bankruptcy if they're unable to meet their financial obligations. The process is overseen by IFECOM (Instituto Federal de Especialistas de Concursos Mercantiles), a governmental agency handling bankruptcies. It involves a conciliation phase, attempted agreement between debtor and creditors, and potentially, a liquidation phase. A critical element in Mexican bankruptcy law is the “Concurso Mercantil”, a procedure aiming at reaching an agreement between a debtor and their creditors, while avoiding unfair preferences and fraudulent transfers.
Not all debts are dischargable under Mexican bankruptcy law. Some types of debt, such as alimony, child support, certain tax debt, and debts obtained through fraud, are generally exempt from discharge.
The duration of the bankruptcy process varies on a case-by-case basis. Reaching a conciliation agreement can take up to 185 days with the possibility of extension. But, if no agreement is reached, the case moves into the liquidation phase.
Concurso Mercantil is a Mexican bankruptcy proceeding that allows a company to continue operating while it restructures and pays its debt. It's akin to Chapter 11 bankruptcy proceedings in the United States.
During the liquidation phase of bankruptcy, assets will likely be sold to satisfy creditors. However, in certain circumstances and under specific protections, some properties may be exempt.
Declaring bankruptcy will impact your credit rating. However, it also provides a structured way to discharge debts and ultimately provides a fresh start to rebuild your financial health.
There are several resources available that can help you navigate bankruptcy and debt in Mexicali. These include:
If you are considering filing for bankruptcy or are in need of debt advice, your first step should be to consult with a legal professional who specializes in bankruptcy and debt law. In Mexicali, you can refer to your local bar association's directory or use online services to find a suitable lawyer. Before meeting with a lawyer, prepare as much information about your financial situation as possible to facilitate the initial consultation.
