Vol 18 (2021) - Issue 1

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Guatemala: Benefits and Challenges of Implementing a Modern Insolvency Legal System in the Context of the Current Global Crisis

Synopsis
In Guatemala, there is no specific law regulating insolvency. The current legislation regulating insolvency was adopted in 1963. This presents a challenge given the current context and the economic crisis caused by COVID-19. It is necessary to update the regulation of insolvency in Guatemala so that companies and individuals in distress can meet their obligations, and a culture of reorganisation is implemented. Due to the current global crisis generated by the COVID-19 pandemic, it is necessary to determine whether approval of a proposed law initiative to regulate the aspects of insolvency would be feasible at this time, due to the challenges its approval and implementation involve.