Legal subordination in Act 20,720

Abstract

One of the novelties of the Act 20,720, of reorganization and liquidation of assets of enterprises and individuals, is the identification of a group of credits that, for different reasons, are degraded in their possibilities of payment, under the logic of a legal subordination. This article aims to grant a first look to such regulation, purporting to identify the reasons for this legal option, separating it from the voluntary subordination recognized in article 2489 of the Chilean Civil Code, to locate them in the context of the several rules that create a ranking of claims and to explore its logic and characteristics in the grounds of the Chilean insolvency regime.