Abstract

This paper explores the legal nature of mortgages created to secure third-party debts. By analyzing the doctrinal challenges associated with this concept, it explores its application within the different insolvency proceedings outlined in Act 20,720 (the Chilean insolvency law). We aim to highlight several gaps and practical problems that may ultimately hinder the achievement of the purpose of these proceedings, at least in terms of the goal of maximizing creditors’ collection possibilities.