A foreign creditor holding a claim against a Colombian debtor can find the ground shifting beneath them when insolvency legislation changes. Colombia's recent amendments to its insolvency legislation introduce revised procedures for creditor participation, altered timelines for submitting a proof of debt. Additionally. New rules governing the role of the administrador concursal (insolvency administrator) throughout restructuring and liquidation proceedings. Creditors who miss the updated deadlines risk losing their priority status or being excluded from the creditors meeting entirely.
Colombia's amended insolvency legislation, effective from the first quarter of 2025, modifies the rights and obligations of creditors in both restructuring and liquidation proceedings. Creditors – including foreign institutional investors and trade counterparties – must file a proof of debt within the revised statutory window or face subordination of their claims. The amendments also expand the powers of the appointed administrator and liquidator to challenge pre-insolvency transactions.
This alert explains which business categories are affected, the applicable compliance deadlines, and the immediate steps that international companies should take to protect their positions in Colombian insolvency proceedings.
What changed and when it took effect
Colombian insolvency legislation was amended through legislative action that entered into force in early 2025. The amendments touch three primary areas.
First, the proof of debt procedure has been restructured. Creditors must now file their claims through a centralised digital platform administered by the Superintendencia de Sociedades (Superintendency of Companies), which is the principal supervisory authority for Colombian insolvency proceedings. The previous practice of submitting paper claims directly to the court is no longer accepted for proceedings opened after the effective date.
Second, the powers of the administrator and liquidator have been broadened. The appointed administrator in a restructuring plan context may now conduct preliminary audits of transactions concluded within a longer look-back period before the commencement of insolvency proceedings. The liquidator in liquidación judicial (judicial liquidation) proceedings holds expanded authority to challenge asset transfers and preferential payments made to connected parties.
Third, the rules governing the creditors meeting – known as the junta de acreedores – have been revised. Voting thresholds for approving a restructuring plan have been adjusted, and remote participation is now formally recognised under insolvency law rather than permitted only by administrative practice.
Who is affected and the compliance deadline
The amendments apply to all insolvency proceedings opened on or after the legislative effective date. This covers the following business categories:
- Foreign companies with Colombian subsidiaries or branches entering insolvency proceedings
- International trade creditors holding unsecured or secured claims against Colombian debtors
- Financial institutions and bondholders participating in restructuring plan negotiations
- Equity investors seeking recovery through liquidation distributions
Proceedings opened before the effective date continue under the prior rules unless the court issues a procedural order adopting the new regime. a scenario that practitioners in Colombia report is occurring with increasing frequency in long-running matters.
The compliance deadline for filing a proof of debt runs from the date of the official publication of the commencement order in each specific proceeding. Under the amended rules, this window is shorter than under the prior regime. Missing it does not extinguish the debt, but it results in the claim being treated as a subordinated obligation. In liquidation, subordinated creditors receive distributions only after all senior and ordinary creditors have been paid in full – a threshold rarely reached in Colombian liquidation proceedings where asset coverage is limited.
For creditors already engaged in proceedings that straddle the effective date, the risk of procedural uncertainty is acute. Courts have discretion to apply the new rules to pending steps even within older proceedings.
To receive an expert assessment of your creditor position in Colombian insolvency proceedings, contact us at info@ferrazwhitmore.com.
Immediate actions for international companies
International companies with exposure to Colombian counterparties should treat the amended insolvency legislation as an active compliance matter. The following steps address the most time-sensitive risks.
1. Audit Colombian counterparty exposure now. Map all outstanding receivables, loan facilities, and guarantee arrangements involving Colombian entities. Identify which counterparties show early signs of financial distress – payment delays, requests for extended credit terms, or reported regulatory difficulties. Early identification allows for proactive debt recovery action before insolvency proceedings commence.
2. Appoint a Colombian-qualified representative immediately upon notice of proceedings. The amended rules require creditors to act through a duly authorised representative in proceedings before the Superintendency of Companies. A foreign creditor without a local representative risks missing critical deadlines. The appointment must be formalised before the proof of debt filing window opens.
3. File the proof of debt within the statutory period – without exception. This is the single most consequential deadline in the amended regime. Gather documentary evidence of the claim, including the underlying contract, invoices, and any security documentation. Submit through the digital platform in the prescribed format. Errors in the filing can be corrected only within the same window.
4. Monitor the restructuring plan and exercise voting rights at the creditors meeting. Under the revised voting thresholds, the outcome of a restructuring plan can turn on the participation of mid-sized creditors. International creditors who do not engage actively at the junta de acreedores cede influence over plan terms to domestic creditors and connected parties.
5. Review cross-border enforcement options in parallel. If the Colombian debtor has assets in other jurisdictions, consider whether parallel enforcement proceedings are viable. Our analysis of insolvency amendments in the United States is relevant for creditors whose debtors have North American assets or operations.
For a detailed review of your company's position in Colombian insolvency proceedings, our team at insolvency and restructuring services in Colombia provides targeted advice on creditor strategy and claims management. Where the matter involves disputed claims or director liability, our corporate disputes practice in Colombia works alongside insolvency counsel to protect client interests throughout the proceedings.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our insolvency and restructuring practice covers Latin American markets with particular depth in Colombian and Iberian civil law systems. We advise international creditors, institutional investors, and in-house legal teams on proof of debt procedures, restructuring plan negotiations, and cross-border enforcement in insolvency proceedings. As a law firm in Colombia and Iberian markets, our team combines Portuguese civil law tradition with English common law methodology to support clients navigating complex restructuring and liquidation processes across multiple legal systems. Engaging a lawyer in Colombia with cross-border insolvency experience is critical when legislative changes alter creditor rights on short timelines. For a preliminary review of your exposure to the 2025 amendments, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.
Published: March 23, 2026
Author: Marco Reyes – International Counsel, Americas & Iberian Markets
Marco Reyes is an International Counsel at Ferraz & Whitmore advising clients on legal matters across Latin American jurisdictions and Iberian markets. He specialises in commercial litigation, investment disputes, and cross-border contract enforcement in civil law systems.