Practice question · Multiple choice
Why does insolvency law freeze individual enforcement actions the moment the concurso is declared?
Hints
- Think about what each creditor would do without the freeze.
- A firm dismembered piecewise is worth less than a firm sold whole.
Show the answer
C. To replace a race for assets with one procedure
Why
Uncoordinated seizures dismember a business that might survive, or sell for more, as a whole. The freeze converts a first-come-first-served scramble into the ranked queue, maximizing what there is to share.
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