Asas

EXPLAIN THE BANKRUPCY PROCESS

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”

Mercantile Obligations:

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

• Payment in kind

•Compensation

• Novation

• Confusion of right

• Transfer of debt

• Termination

Contract Personal element Example

• Buy and sale__________________________ ________________

• Bail ___________________________ _______________

• Warehouse __________________________ _______________

• Loan...