We invite you to read the letter written by Nicolás Cruz, a senior associate in our Civil Litigation and Arbitration Group, who analyzed the reasons behind the increase in renegotiation proceedings.
Dear Editor:
The latest monthly statistical report from the Superintendency of Insolvency and Restart revealed a telling statistic: May 2026 saw the highest number of requests for renegotiation under Law No. 20,720, with a total of 748, representing a year-over-year increase of 172%.
Although, in general terms, the increase in renegotiations and liquidations is linked to the weak economy and poor short-term growth prospects, it is worth asking about the possible reasons for the sustained increase in renegotiation proceedings relative to liquidation proceedings.
On the one hand, the renegotiation process may be beginning to be perceived as a genuine mechanism capable of resolving individuals’ debt or liquidity problems. In fact, in 2025, a total of 98.8% of renegotiation hearings concluded with the approval of the proposed agreement.
On the other hand, there is the more or less institutionalized approach adopted by the main creditors in these proceedings—namely, banks and retail companies—to support this type of insolvency proceeding by offering favorable and achievable terms for renegotiation, which in the medium and long term may result in cleaner loan portfolios and less strain on the already overburdened judicial system.
It remains to be seen whether this trend will take hold this year and whether the sustained growth in insolvency renegotiation proceedings will continue.
Letter written by:
Nicolás Cruz | Civil Litigation and Arbitration Group Senior Associate | ncruz@az.cl
