The signs that indicate you are about to file for bankruptcy

The insolvency law for non-traded natural persons, in force since 2012, allows people who are not traders. Who have debts in arrears, to find a definitive solution so they do not have ability to pay? Through a simple process, lasting only 60 days, Colombians who have not been able to pay their debts, can have a second chance avoid claims foreclosures auctioned of their assets. Then identify symptoms, which if they occur in the development of your personal financial life, indicate that you should avail yourself of the law of insolvency.  Have you used credit card quotas, overdrafts, or revolving credits to pay fees or other credits?


Hundreds of people, who consult us, agree that before the expiration of the payment date and when you do not have the resources to do so, the first alternative they use to be the easiest is to make an advance of another credit card, or use the revolving credit quotas or overdrafts to cover overdue installments.

This may delay the problem for a few days; But at the expiration of the next installment, not only the credit that has expired, but also the fee that used to extinguish the financial fire with their respective interests, which in the long term is unsustainable. Have you applied for loans to third parties or friends to keep other credits current?

In a good number of cases, people have debts with lenders or natural persons, generally at very high interest rates, to those who have come when they are distressed for not paying on time the bank loans. These loans are usually much more expensive and in most cases, the pressure exerted by collectors is very strong against the debtor.

The solution to the blackberries in credits, by definition, cannot consist in acquiring a new credit, since one or two months later both will be overdue and only be possible to enlarge the problem. It is always worth asking what the scenario will be at 3, 6 and 12 months to assess whether the financial problem in the background really solves it.

Some analyzes suggest that people should allocate a maximum of 30% of their individual budget to pay debts because there are unavoidable expenses for the maintenance of the home. A higher level of indebtedness could compromise the ability to meet basic expenses and, consequently, the standard of living and the ability to keep credit up to date. Do you get more calls from banks than from your family and friends?

The management of collection through telephone calls has become a headache for Colombians with arrears. Thousands of Colombians complain about the constant calls on inappropriate days and hours and the insistence of the collectors, who usually try to get the debtor to set a date on which they will be updated, without success in many cases.

Given the inability of the debtor to offer with certainty a date in which he will update his credits, will continue to call him on a constant basis. Do you have administrative arrears, past due leases, or delinquent public services? This is without counting tuition pensions and other monthly expenses of the household. The basic expenses that have to be covered every month by any family are irredeemable and must have priority. In addition, when they are late, they generate additional costs for the debtor such as penalties interest collection costs that make it more difficult to catch up.

When the budget is not enough to pay these expenses, it is necessary to think of a final and definitive solution to avoid that the risk of evictions or auctioning of goods increases exponentially. All these debts for administration, lease or services fall within the process of insolvency and with the beginning of the process prevents the debtor from advancing restitution or eviction proceedings. The law even contemplated that there are public services in arrears they must be reconnected once the insolvency proceedings have begun, so that the amount owed has not been canceled.

Do you have attachments on your salary or pension?

Hundreds of Colombians have the salary or the pension embargoed as a result of not being able to pay their obligations on time the insolvency law allows the debtor to cancel their debts, definitively eliminating the discounts for embargoes that fall on their salary or pension.

Have you initiated proceedings against you?

Given the impossibility of paying their obligations on time, creditors will initiate legal collection proceedings against them. By which they would garnish their assets, accounts, salaries or rights. With the commencement of the insolvency proceedings, the executive proceedings against the debtor are suspended. The debt will be dealt with in the process. If you have two or more of these symptoms, you probably need to consult an expert. Hundreds of families in inability to pay have definitely solved their debt problems by availing themselves of the insolvency law.