An option for individuals with more debts than income is civil and business bankruptcy. The civil bankruptcy is intended to settle debts, but the debtor can keep some assets. The business bankruptcy aims to preserve business and companies, so it does not simply pursue to settle debts
In Mexico, three main figures can be used to protect heritage: 1) the constitution of a family estate; 2) the donation of property to minors sons and daughters; and 3) the creation of a trust.
The judicial procedure of bankruptcy settles debts in a non-conflictive manner. It can be used for both civil and commercial matters, and, when used commercially, is designed to allow the business to continue operating.
The mitigation measures for COVID-19 can be classified as Force Majeure. There are precedents and legislation that will help if you need to terminate your contract because of COVID-19, without having to pay penalties and damages.
Generally speaking, yes! Civil legislation in Mexico considers this type of circumstance “Force Majeure”. Force Majeure may also prevent defaults from being considered an “intentionally wrongful act”.