Quick summary: Yes, an individual in Guatemala can ask a judge to declare a Concurso (insolvency proceeding) for them, whether or not they are a merchant. The governing law is the Ley de Insolvencia, Decree 8-2022, which governs a Concurso rather than a quiebra (bankruptcy). The debtor can file a voluntary Concurso before the civil court of first instance of their domicile (Art. 75). Small cases (at most five creditors, or assets or debts under the equivalent of US$100,000) can use a shortened procedure (Art. 119). When the Concurso ends, the unpaid part of the debts is extinguished, except child/family support, administrative credits and unpaid wages; three years later you can request deletion of your credit record; and those benefits can be used only once (Art. 140). The Constitution says there is no imprisonment for debt, but the Penal Code (Art. 354) still punishes certain conduct by a non-merchant debtor.
General information, not legal advice. A Concurso is a court proceeding with a judge and an insolvency administrator (Administrador Concursal). This page summarises what the law says; for your specific situation, consult a licensed Guatemalan lawyer.
The short answer: yes, even if you are not a merchant
The Insolvency Law, Decree 8-2022, was published in the Diario de Centro América on March 3, 2022. Its Article 2 says: «Las normas previstas en esta Ley serán aplicables a toda persona individual o jurídica». In English: the law applies to every individual or legal entity. Article 82 repeats it for the court declaration:
«La declaratoria judicial del Concurso procede respecto de cualquier persona individual o jurídica, comerciante o no, que, como deudor, pudiese estar en estado de insolvencia según las presunciones establecidas en esta Ley»
In English: a judicial Concurso declaration applies to any individual or legal entity, merchant or not, who as a debtor may be insolvent according to the presumptions set out in this law. That last clause matters: the judge declares a Concurso when the debtor fits one of the presumptions of Article 77 (listed below), not simply because you ask.
Who is excluded. Article 2 excludes the State and other public bodies: «Se excluyen de su aplicación, las obligaciones del Estado, las entidades autónomas, semiautónomas, descentralizadas y las municipalidades, que se regirán conforme a sus leyes respectivas». It also excludes banks, finance companies, insurers, reinsurers and other entities supervised by the Superintendencia de Bancos. Those entities can take part only on the other side: «Los entes excluidos podrán únicamente actuar como acreedores» (they may act only as creditors).
Since when? Article 153 says: «La presente Ley entrará en vigor seis (6) meses después de su publicación en el Diario Oficial y será aplicable a los concursos promovidos a partir de esa fecha». In English: the law takes effect six months after publication in the official gazette and applies to proceedings filed from that date. The sources we reviewed give different exact start dates, so we do not state one.
Bankruptcy (quiebra) is no longer the legal word
The law speaks of Concurso, Concurso voluntario (voluntary) and Concurso necesario (involuntary). Other laws keep the older term: the RENAP law (Art. 70, literal p), for example, still lists among the acts recorded in the Civil Registry «La declaración de quiebra y su rehabilitación» (the declaration of bankruptcy and its rehabilitation). The Insolvency Law itself gives the rule for reading such references in Article 147: «Todas las disposiciones legales que se refieran a situaciones de quiebra deben entenderse referidas a las situaciones de insolvencia previstas en la presente Ley» (all legal provisions that refer to bankruptcy situations are to be understood as referring to the insolvency situations provided for in this law). The sources we reviewed do not explain how a Concurso under the new law is recorded at RENAP.
The Civil and Commercial Procedure Code no longer governs this
Some copies of the Código Procesal Civil y Mercantil published online still include Articles 347 to 400, which governed voluntary and involuntary concurso and quiebra. Those articles are repealed. Article 152 of the Insolvency Law provides that, once it is in force, «quedarán derogadas las siguientes disposiciones: el Título V del Libro Tercero, artículos 347 al 400 del Código Procesal Civil y Mercantil, Decreto Ley 107», and it also repeals Articles 21 and 358 of the Commercial Code.
The only exception is in the same article: «Lo anterior se entiende sin perjuicio que los concursos en trámite continuarán rigiéndose por la ley vigente al tiempo de su iniciación». In English: proceedings already under way continue under the law in force when they began. The old regime applies only to proceedings already under way when the new law took effect.
When you are presumed insolvent (Art. 77)
Article 77 opens: «Se podrá presumir la insolvencia del deudor y solicitar el Concurso en los casos siguientes» (insolvency may be presumed, and a Concurso requested, in the following cases):
| # | Text of Art. 77 | In English |
|---|---|---|
| 1 | «Cuando la masa pasiva de una persona exceda a su masa activa, determinada contablemente» | Liabilities exceed assets, as determined by the accounts |
| 2 | «Cuando existan dos o más embargos por demandas ejecutivas o por ejecuciones contra el mismo deudor» | Two or more seizures (embargos) from enforcement suits against the same debtor |
| 3 | «Cuando existan dos o más obligaciones del deudor en las que se haya protestado el documento o se haya requerido el pago por escrito y tengan más de cuatro (4) meses de vencidas» | Two or more obligations protested or demanded in writing and more than four months overdue |
| 4 | «Cuando exista cierre de más de veinte (20) días hábiles de la sede administrativa o del establecimiento donde el deudor desarrolla su actividad principal, con excepción de las causas de fuerza mayor o que deriven del giro ordinario o del tipo de actividad económica» | The debtor’s main place of business closed for more than 20 business days, except for force majeure or reasons inherent to the business |
| 5 | «Cuando el deudor no pueda cumplir sus obligaciones o considere que está próximo a incumplir sus obligaciones ante sus acreedores» | The debtor cannot meet their obligations, or considers they are about to default |
| 6 | «Cuando el deudor, tratándose de una persona jurídica, los miembros del órgano de administración o representantes legales, se ocultaren o se ausentaren del domicilio social o lugar principal de los negocios del deudor por más de sesenta (60) días hábiles, sin dejar representantes legales con facultades y bienes o medios suficientes para cumplir con sus obligaciones» | For legal entities: directors or legal representatives hide or are absent for more than 60 business days without leaving representatives or means to pay |
For an individual, the presumptions closest to everyday life are numbers 1 (you owe more than you own), 2 (two or more seizures) and 5 (you cannot pay, or expect you soon will not be able to). Number 6 concerns legal entities.
Voluntary or involuntary Concurso (Art. 78)
«El Concurso puede ser voluntario o necesario» (a Concurso can be voluntary or involuntary). Under Article 78 it is voluntary:
| Case | Text of Art. 78 | In English |
|---|---|---|
| The debtor files | «Cuando sea solicitado por el deudor, siempre y cuando no exista una solicitud previa de Concurso, promovida por alguna otra persona legitimada para ello» | The debtor files, provided no earlier Concurso petition has been brought by someone else entitled to file |
| A creditor files, but the debtor had proposed a plan | «Cuando, ante la solicitud de un acreedor, el deudor demuestre que presentó uno o varios Planes de Reorganización dentro de los tres (3) meses anteriores a la solicitud del acreedor» | The debtor shows they submitted a reorganisation plan within the three months before the creditor’s petition |
| Any other case | «En cualquier otro caso, el Concurso será necesario» | Otherwise, the Concurso is involuntary |
The difference matters: if a creditor files first, your own petition no longer makes it voluntary, except in the prior-reorganisation-plan case.
Who can file (Art. 79). The debtor; any creditor holding one or more overdue debts that were protested or demanded in writing, provided at least one Article 77 presumption applies; the debtor’s co-debtors, guarantors or endorsers; and banks, finance companies, insurers and reinsurers acting as creditors.
How to file: court and documents
| Point | What the Insolvency Law says |
|---|---|
| Court | «El Concurso deberá solicitarse ante los Juzgados de Primera Instancia del Ramo Civil con jurisdicción en el lugar donde el deudor tenga su domicilio o sede social» (Art. 75): the civil court of first instance where the debtor is domiciled |
| General requirements | Those of any initial petition under the Código Procesal Civil y Mercantil (Art. 80) |
| Economic history | «Un resumen de la historia económica y jurídica del deudor, indicando la actividad o actividades a las que se dedica o se dedicó en el pasado, las oficinas, establecimientos o explotaciones de las que fuera titular, la indicación de procesos judiciales en curso y las causas que a su juicio lo llevaron a la insolvencia» (Art. 80, item 1): a summary of your economic and legal history, activities, businesses, pending lawsuits and what led to the insolvency |
| Accounts | «Si el deudor estuviera obligado a llevar contabilidad, acompañará el Balance General, Estado de Resultados, Estado de Flujo de Efectivo, y cualquier otra información contable correspondiente a los tres últimos ejercicios, si existiera» (Art. 80, item 2): if you are required to keep accounts, three years of financial statements, signed by a public accountant or auditor |
| Missing documents | The judge gives ten business days to correct the petition; if not corrected, it is rejected (Art. 80) |
Items 3 to 5 of Article 80 apply to legal entities.
Specialised courts. Article 150 orders the Organismo Judicial to create specialised insolvency courts within at most five years of the law’s entry into force, and Article 151 orders the Ministry of Economy to issue the law’s implementing regulations. We did not verify whether those courts or regulations exist yet, so this page uses the general rule of Article 75.
For how Guatemala’s civil courts are organised, see our guide to the Organismo Judicial.
What happens to your property during the Concurso (Arts. 87 and 88)
Under Article 87:
- Voluntary Concurso: the debtor’s control over their assets is limited and an Administrador Concursal is appointed to supervise their administration. The judge can suspend the debtor’s control if the administrator asks because the assets are at risk.
- Involuntary Concurso: the debtor’s control is suspended; they cannot dispose of the assets or take on obligations affecting them, and the administrator takes their place.
- In both cases: «Se exceptúan de la suspensión o limitación de la posesión del deudor, los actos personalísimos o referidos a bienes inembargables» (strictly personal acts and property that cannot be seized are exempt).
Subsistence minimum. Article 88 protects individuals: «En caso de la limitación de la posesión sobre la masa del Concurso, el deudor persona individual tendrá derecho a percibir un mínimo vital con cargo a la masa activa». In English: when control over the estate is limited, an individual debtor is entitled to a subsistence minimum paid from the assets. People the debtor owes support to receive that minimum only when they cannot get enough from another person obliged to support them.
The shortened procedure for small cases (Art. 119)
The law provides a shorter route: «El proceso concursal abreviado será aplicable, con base a la información provista en primera audiencia, en los siguientes casos». In English: the shortened procedure applies, based on the information given at the first hearing, in the following cases. The cases it lists include:
| Condition | Text of Art. 119 | In English |
|---|---|---|
| Few creditors | «Cuando el deudor tenga un máximo de cinco acreedores» | The debtor has at most five creditors |
| Low assets | «Cuando el activo del deudor sea menor al equivalente a cien mil dólares de los Estados Unidos de América» | Assets under the equivalent of US$100,000 |
| Low debts | «Cuando el pasivo del deudor sea menor al equivalente a cien mil dólares de los Estados Unidos de América» | Liabilities under the equivalent of US$100,000 |
These are alternative cases, decided on the information given at the first hearing. The threshold is set in US dollars, not quetzales.
How it ends and which debts disappear (Arts. 138 and 140)
Article 138 lists when a Concurso ends, among other cases: when the reorganisation plan or the liquidation has been carried out, when the creditors have been paid, when the assets do not exist or have run out without paying everything, or on the debtor’s death.
At the end, Article 140 says: «El Juez Concursal dará por concluido el proceso por medio de auto que declare la terminación del Concurso y la extinción de los créditos concursales en la parte en que no hubiesen sido satisfechos». In English: the judge closes the proceeding with an order that declares the Concurso ended and the unpaid part of the Concurso debts extinguished.
It adds: «En personas individuales, se observarán las siguientes reglas» (for individuals, the following rules apply):
| Rule | Text of Art. 140 | What it means |
|---|---|---|
| 1. What is not discharged | «Se exceptúan de la extinción señalada en el primer párrafo de este artículo, los créditos relativos a la obligación de prestar alimentos, los créditos administrativos y los créditos correspondientes a salarios de periodos laborados no pagados» | Child or family support (alimentos), administrative credits and wages owed for work already done survive |
| 2. Credit record | «Tres (3) años después de la fecha del auto de terminación del concurso, el deudor podrá solicitar la eliminación de su récord crediticio en las oficinas o dependencias de registros crediticios del país o entidades públicas o privadas que manejan información crediticia» | Not automatic: three years after the closing order you may request deletion from credit registries and credit-information companies |
| 3. Once only | «La extinción de créditos y la eliminación de la información crediticia no procederán contra personas que ya hayan hecho uso de estos derechos derivado de un proceso concursal anterior» | If you already used these benefits in an earlier proceeding, you do not get them again |
If a court has set child support you must pay, it survives the end of your Concurso; see our guide to child and spousal support through the courts.
Can you go to jail for debt?
The Constitution: Article 17 ends with a short sentence: «No hay prisión por deuda» (there is no imprisonment for debt).
The Penal Code: that does not mean insolvency never has criminal consequences. Article 354 of the Penal Code (Decree 17-73, CENADOJ compilation updated to January 31, 2024) says:
«El concursado no comerciante cuya insolvencia fuere el resultado, en todo o en parte, de alguno de los hechos siguientes, será sancionado con prisión de uno a dos años»
In English: a non-merchant debtor in a Concurso whose insolvency resulted, wholly or partly, from any of the following acts is punished with one to two years in prison. The acts are:
- «Haber hecho gastos domésticos o personales excesivos y descompensados con relación a su fortuna, atendidas las circunstancias de su rango y familia» (household or personal spending excessive and out of proportion to one’s means)
- «Haber sufrido, en cualquier clase de juego, pérdidas que excedieren de lo que por vía del recreo aventure en entretenimiento de esta clase, un buen padre de familia» (gambling losses beyond what a prudent person would risk for recreation)
- «Haber tenido pérdidas en apuestas cuantiosas, compras y ventas simuladas y otras operaciones de agiotaje, cuyo éxito dependa exclusivamente del azar» (losses from large bets, sham purchases and sales, and speculation that depends purely on chance)
- «Haber enajenado, con depreciación notable, bienes cuyo precio estuviere adeudando» (selling at a marked loss goods you had not yet paid for)
- «Retardar su presentación en concurso, cuando su pasivo fuera tres veces mayor que su activo» (delaying filing for Concurso when debts were three times assets)
Item 5 is the one that bears most on the decision: once your debts are three times your assets, delaying a Concurso petition is conduct the article punishes.
For merchants, the Penal Code also has the offences of fraudulent and culpable bankruptcy (Arts. 348 and 349). The text of the Insolvency Law we reviewed neither mentions nor amends the Penal Code. Its Article 147 says legal provisions that refer to quiebra situations are to be read as referring to the insolvency situations of that law, but none of the sources we consulted explains how courts apply that rule to Articles 348 and 349.
Before you decide
- If a creditor has already sued you, see our guide to civil debt collection lawsuits. Two or more seizures against you are one of the Article 77 presumptions of insolvency.
- If you are planning to rebuild credit, remember Article 140 lets you request deletion of your record three years after the closing order, not before. For the credit landscape, see our personal loans comparison.
- Costs and timelines: we found no official cost or duration for a Concurso in the sources we reviewed. Our page on lawyer fees in Guatemala is a general reference for fees. If you live abroad, see hiring a lawyer in Guatemala from the USA.
Source summary
| Source | What it covers | Status |
|---|---|---|
| Decree 8-2022, Ley de Insolvencia (Diario de Centro América, March 3, 2022) | Scope, presumptions, voluntary and involuntary Concurso, shortened procedure, debt discharge, credit record | In force |
| Constitution, Art. 17 | No imprisonment for debt | In force |
| Penal Code, Art. 354 (CENADOJ, updated to January 31, 2024) | Offence by a non-merchant debtor in a Concurso | In force; not amended by the Insolvency Law |
| Civil and Commercial Procedure Code, Arts. 347-400 | The old bankruptcy regime | Repealed (Decree 8-2022, Art. 152), except proceedings already under way |
Related procedures
- Civil debt collection lawsuit: how a creditor can sue you over a debt.
- Child and spousal support: the debt a Concurso does not discharge.
- Organismo Judicial: courts and judicial procedures.
- Lawyer fees in Guatemala: fee reference.
- Hiring a lawyer in Guatemala from the USA: for readers abroad.
- Personal loans in Guatemala: credit and lenders.
Sources, read September 29, 2026: Decree 8-2022, Ley de Insolvencia, on the Congress of the Republic website (scan of Diario de Centro América No. 29, March 3, 2022) and its legislative record, initiative 5446; Constitución Política de la República de Guatemala (OAS copy); Penal Code, CENADOJ (Organismo Judicial) compilation updated to January 31, 2024; RENAP law, Art. 70.