Towards a necessary deformalization of insolvency proceedings

Abstract

Law No. 24522 imposes on the debtor strict requirements to access the regulatory regime established for insolvency proceedings and also during its progress, regardless of the size of the insolvent company. Even though it includes two articles for small insolvency proceedings, these do not constitute a different regime per se, so these proceedings are subject to the same formal requirements as those imposed on all other insolvent companies. This entails an obstacle in a country where the majority of companies are small companies, which tend to be discouraged from resorting to this insolvency regulatory regime given its strict formal requirements. The main claim in this article is the need to implement a regulatory reform to simplify debt restructuring and which takes into account the experience acquired during the last two years in the use of technological resources. This appears to be the trend based on legal scholars’ current criteria and recent reforms in foreign systems.