Insolvency Proceedings Involving Real Estate Trust Structures

Abstract

The steady growth of real estate trusts in Colombia, along with the increasing number of insolvency proceedings involving them, has highlighted the normative tensions between the fiduciary regime and the corporate insolvency framework established by Law 1116 of 2006. This article offers a critical and practical analysis of judicial decisions affecting autonomous trust estates. Based on the review of 42 insolvency applications, it identifies the main legal and procedural barriers, as well as the key factors influencing the admissibility of these trusts into reorganization or liquidation proceedings. The study further explores the particularities of real estate administration trusts, the impact of judicial decisions on their operability, and the need for regulatory adjustments that respect the legal structure of these fiduciary arrangements. Finally, it proposes legal and contractual reforms aimed at harmonizing the fiduciary regime with the rules of insolvency law.