Guatemala – changes in the regulations regarding insolvencies and bankruptcy: approval of the law on insolvencies, by virtue of which the existing…

On February 8, 2021, the Congress of the Republic of Guatemala approved the Insolvencies Law. Such Law will imply material and important changes to the legal framework applicable to insolvency and bankruptcy procedures, which will be oriented to benefit the reorganization and continuation of business for debtors that are facing insolvency, so they may comply with their credit obligations without endangering the creditors rights. The next step for the Law on Insolvencies entry into force, is to obtain the presidential approval and publication by the Executive Branch of government. At Arias Guatemala, we participated pro bono in the analysis of the bill by providing our observations and recommendations thereof, as we consider that it will create a balanced ecosystem between entrepreneurs and the continuation of business with its creditor, favoring business instead of its liquidation.

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Guatemala - changes in the regulations regarding insolvencies and bankruptcy: approval of the law on insolvencies, by virtue of which the existing...