Short answer
When a Mexican customer is declared in concurso mercantil, creditors can no longer attach or enforce against its assets (art. 65 of the Ley de Concursos Mercantiles, LCM) and must assert their claims inside the proceeding. The critical step is filing for recognition of your claim with the conciliator within 20 calendar days after the judgment is published in the Official Gazette (art. 122). At the same time, review guaranteed promissory notes, registered security, goods in transit or on consignment, and payments received in recent months.
Legal test for insolvency
A merchant with two or more creditors is in generalized default when both conditions are met (arts. 9-10 LCM): obligations at least 30 days past due represent 35% or more of all its obligations, and its liquid assets do not cover at least 80% of its past-due obligations. The debtor may also file when default within the next 90 days is imminent (art. 20 Bis), and any creditor may file against it (art. 21).
What the judgment changes
| Effect | LCM article | For the creditor |
|---|---|---|
| Stay on attachment and enforcement | 43 IX, 65 | Individual lawsuits stop being a collection route during conciliation. |
| Suspension of payments | 43 VIII | Pre-judgment debts are not paid, except those essential to operations. |
| Acceleration | 88 | Outstanding obligations are deemed due. |
| Interest and UDIs | 89 | Unsecured claims stop accruing interest and are converted into UDIs. |
| Set-off restricted | 90 | You cannot freely offset what you owe the customer. |
| Ipso facto clauses | 87 | Clauses worsening terms merely because of the filing are deemed not written. |
Goods, contracts and recent payments
- Goods in transit: a seller may stop delivery of unpaid goods not yet received by the debtor (art. 94).
- Separation of assets: consigned goods and goods sold on credit under a registered rescission clause that remain unpaid can be separated from the estate (arts. 70-71).
- Pending contracts: you may ask the conciliator whether a contract will be performed; with no answer within 20 days, you may terminate it (art. 92).
- Look-back: payments and new security granted during the look-back period may be challenged (arts. 112-115).
Action plan for the credit team
- Locate the publication in the Diario Oficial and calendar the 20-day deadline.
- Build the claim file: invoices, proof of delivery, contracts, notes, account reconciliation.
- File for recognition and review the provisional list.
- Enforce third-party guarantees.
- Stop shipments and check goods in transit or on consignment.
- Review payments received in recent months.
- Take part in conciliation and assess any agreement financially.
Frequently asked questions
How long do I have to file my claim?
Under article 122 of the Mexican Business Reorganization Act (Ley de Concursos Mercantiles, LCM), within 20 calendar days after the insolvency judgment is published in the Diario Oficial de la Federación, or within the objection period to the provisional list (art. 129) or the appeal period of the recognition judgment. After that, the claim can no longer be filed.
Can I continue my collection lawsuit or attachment?
No. From the insolvency judgment and during conciliation, attachment and enforcement orders against the debtor's assets are suspended (art. 65 LCM), except for employees' wages for the last two years. The claim must be asserted within the proceeding.
Does my invoice keep accruing interest?
Unsecured claims stop accruing interest and are converted into UDIs (inflation-indexed units) as of the judgment (art. 89 LCM). Outstanding obligations are deemed due (art. 88).
Can I still collect from a guarantor (aval) on a promissory note?
The aval is jointly and severally liable with the guaranteed party, and the guarantee stands even if the guaranteed obligation is void (arts. 114 and 4, General Law of Negotiable Instruments and Credit Operations, LGTOC). Guarantees from third parties are often the fastest route to recovery.
Could I have to return payments received before the filing?
Possibly. The court sets a look-back date, generally 270 calendar days before the judgment, which can be extended up to three years (art. 112 LCM). Certain acts in that period can be set aside as fraud on creditors (arts. 113-115).
How long does the conciliation stage last?
185 calendar days, extendable twice by 90 days, never exceeding 365 days in total (art. 145 LCM). Without an agreement, the debtor is declared bankrupt (quiebra).
Related: securing trade credit in Mexico · commercial debt collection in Mexico · statute of limitations · versión en español