Question 1

Which bankruptcy laws apply in Puerto Rico?

Accepted Answer

Bankruptcy in Puerto Rico is governed by the U.S. Bankruptcy Code and handled by the U.S. Bankruptcy Court for the District of Puerto Rico. Individuals most often file under Chapter 7 (liquidation) or Chapter 13 (reorganization with a repayment plan), and Chapter 12 offers a similar path for family farmers and fishermen. Business reorganizations under Chapter 11 are a separate practice area.

Question 2

What is the difference between Chapter 7 and Chapter 13?

Accepted Answer

Chapter 7 discharges most unsecured debts after liquidating non-exempt assets and usually concludes within a few months. Chapter 13 lets you keep your property and repay creditors over three to five years through a court-approved plan. Income and the type of debt determine which option you qualify for.

Question 3

Will filing for bankruptcy stop creditor collection efforts?

Accepted Answer

Yes. Filing triggers an automatic stay that immediately halts most collection actions, including lawsuits, wage garnishments, foreclosures, and harassing calls. Some obligations such as certain taxes, child support, and student loans may not be dischargeable, so legal advice is important.

Bankruptcy (Chapters 7, 12 & 13) Lawyers in Puerto Rico

Alejandra Soltero

Marysol Román

Frequently Asked Questions — Bankruptcy (Chapters 7, 12 & 13)

Frequently Asked Questions

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