Abstract

We analyze the evolution of the measures adopted by Law No. 20,720 on the reorganization and liquidation of companies and individuals, with the objective of determining whether these modifications effectively promote the reorganization of debtor companies through the generation of efficient incentives for this. In the first part, a quantitative comparison is made between companies that access reorganization versus those that are liquidated in Chile; in the second part, the incentives of our current legal system regarding insolvency are analyzed, based on two stages: the stage prior to insolvency, and the ex post stage once the reorganization has been decreed.