Abstract

This paper analyses the simplified reorganization procedure for micro and small business introduced by Law 21.563 to Law 20.720 on reorganization and liquidation of companies and individuals in Chile. To achieve the aforementioned objective, the effectiveness of the judicial reorganization procedure was investigated and it was verified whether the simplified version of this mechanism complies with the recommendations of the UNCITRAL Legislative Guide and principles that encourage the out-of-court reorganization of viable companies and the fresh start principle; and a regulatory framework favorable to micro and small business, focusing the analysis on the participation of overseers, the characteristics of the bankruptcy financial protection period. The content of the reform on these three points is contrasted with what is regulated in the Law on Preventive Insolvency in Ecuador and what was contained in the draft Decree Law on Corporate Restructuring in that country. The hypothesis put forward is that there is partial compliance with the aforementioned, so that the changes do not go further in reducing complexity with respect to the process already present in the Law, requiring a deepening of the instruments available for small business.