economy
May 3, 2026
How to Fix Debt in Colombia: Legal Options and Keys
How to fix debt in Colombia is one of the most frequent searches among households with limited income. In the country, those who earn less than a minimum wage have obligations that can reach up to 3.7 minimum wages, which increases the risk of default and judicial processes.
TL;DR
- Households in Colombia earning less than a minimum wage often have debts equivalent to up to 3.7 minimum wages, increasing default risk.
- Debt non-payment can lead to pre-judicial collection, followed by judicial collection, lawsuits, and asset seizure.
- Colombian law allows for the embargo of assets, bank accounts (up to approximately $55 million unembargoable limit), and up to 50% of salary exceeding the minimum wage.
- Debts in Colombia expire, typically between three to five years, but negative credit reports may persist longer.
- Negotiating debts through refinancing, restructuring, or payment agreements is recommended, prioritizing high-interest obligations.
- Negative credit reports remain for double the default period, capped at four years after payment, with a final expiry of eight years.
- The insolvency of a non-merchant individual allows for debt reorganization through agreements supervised by notaries or conciliation centers.
- In Colombia, civil debt does not lead to jail time, except for non-payment of alimony; debts are settled through inheritance upon death.