The bankrupcy will occur when…
• The trader (comerciante) applies for it.
• When the conciliation happens between the creditor and the debtor withoutthe intervention of a judge.
• When there´s no conciliation and a judge has to intervene in the agreement.
Declaration of bankruptcy statement must have:
• Declares thesuspension of the legal capacity of the traders rights, goods and obligations.
• An order to the trader and management staff to give to the trustee (syndic) all of their possession rights andobligations.
• The prohibition to the trader´s debtor to pay him (trader) without the trustee´s authorization.
• Besides the previous statements the declaration of bankruptcy mustinclude the fractions 1,2,15 of article 43 of the “Ley de concursos mercantiles”
Elements of the obligations are:
• The relation (obligations between two persons)Example: Rent (house,building)
• The object (Any debt) Example: money
• The person(the debtor and borrower)
Ways to transmit obligations
Assignment of rights creditor’s rights, alegal relationship may assign or transfer the rights as a creditor for another person replace him, taking the debtor obligation to pay the new lender.
Assignment of debtors: Substitution of adebtor by another.
Subrogation: Substitution of a debtor by another without the concent of the creditor.
Forms to extinguish obligations:
• Payment in kind
• Confusion of right
• Transfer of debt
Contract Personal element Example
• Buy and sale__________________________ ________________
• Bail ___________________________ _______________
• Warehouse __________________________ _______________