Countries › Costa Rica › Guide › 14. Disputes › Insolvency in Costa Rica for creditors: the single concurso under Ley 9957, the collection stay, ranking, creditor votes and cross border recognition

Insolvency in Costa Rica for creditors: the single concurso under Ley 9957, the collection stay, ranking, creditor votes and cross border recognition

Last verified: 2026-10-29 · Status: Stable

Since 1 December 2021 the Ley Concursal de Costa Rica (Ley 9957) replaced bankruptcy, preventive arrangements and court reorganisation with one concurso for all private debtors. Opening suspends collection and money enforcement against the debtor's assets and stops interest except on secured claims up to the collateral. Claims rank as specially privileged (mortgages, pledges, guarantee trusts), generally privileged (support, labour, personal injury), common and subordinated, and restructuring proposals pass by majorities of creditors and capital that rise with the haircut or term.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent.

Key facts

Insolvency law	Ley 9957, Ley Concursal de Costa Rica textLey 9957, as of 2026-10-29 · in force
Stay on collection and money enforcement	yes, on the debtor's assets textLey 9957 art. 18.2, as of 2026-10-29 · in force
Term for creditors to appear	15 days from publicationLey 9957 art. 15.3, as of 2026-10-29 · in force
Ranking	special privilege, general privilege, common, subordinated textLey 9957 art. 34, as of 2026-10-29 · in force
Capital majority for long terms or deep haircuts	65 %Ley 9957 art. 40.7, as of 2026-10-29 · in force
Recognition of foreign proceedings	Sala Segunda, Ley 9957 chapter on cross border insolvency textLey 9957 art. 67, as of 2026-10-29 · in force

The rule

1. A single concurso applies to private debtors: individuals, estates, private legal entities including those in liquidation, and autonomous estates with business activity; pending old bankruptcy and reorganisation cases continue under the old law; the law entered into force six months after publication (La Gaceta 103, 31 May 2021).Ley 9957, Ley Concursal de Costa Rica, art. 2, 4 and 75, 2021-04-14 official text · verified 2026-10-29

2. The concurso opens on a general, non transitory patrimonial crisis or imminent insufficiency; insufficiency is presumed when the debtor admits it, fails two or more due obligations to different creditors without visible assets, ceases business or its managers disappear, or makes preferential, ruinous or fraudulent dispositions.Ley 9957, Ley Concursal de Costa Rica, art. 5, 2021-04-14 official text · verified 2026-10-29

3. The opening judgment appoints an intervenor or administrator and calls creditors to appear within 15 days of publication in a national daily; the debtor usually keeps running the business, with acts beyond the ordinary course subject to the intervenor's consent and some to court approval.Ley 9957, Ley Concursal de Costa Rica, art. 15 and 17, 2021-04-14 official text · verified 2026-10-29

4. Prior collection proceedings and money enforcement are suspended as to the debtor's assets, unless an auction was already scheduled and notified; non collection court and arbitral cases continue; foreign currency claims are converted at the official selling rate on opening, except claims governed by foreign law; interest stops accruing except on specially privileged claims up to the collateral.Ley 9957, Ley Concursal de Costa Rica, art. 18 and 19, 2021-04-14 official text · verified 2026-10-29

5. Contracts with pending obligations remain in force; the debtor with the intervenor may seek court authorisation to terminate them, and the counterparty may ask whether it will do so and request termination or adequate security.Ley 9957, Ley Concursal de Costa Rica, art. 20, 2021-04-14 official text · verified 2026-10-29

6. Claims rank as specially privileged (mortgages, pledges, guarantee trusts, security interests, retention), generally privileged (support, labour, uninsured personal injury), common and subordinated (including related parties); 10% of the proceeds of collateral is reserved for support, labour and injury claims if other assets fall short.Ley 9957, Ley Concursal de Costa Rica, art. 34, 2021-04-14 official text · verified 2026-10-29

7. Creditors vote by a majority of creditors present and a capital majority: an ordinary capital majority for haircuts up to half with payment within three years; at least 65% of capital for terms over three and up to ten years or haircuts above half; at least 30% for full payment within two years or immediate payment with a haircut under 20%.Ley 9957, Ley Concursal de Costa Rica, art. 29.5 and 40.7, 2021-04-14 official text · verified 2026-10-29

8. A debtor in actual or imminent insufficiency may sign an out of court agreement with creditors; it binds signatories and binds the rest only if approved by the insolvency court.Ley 9957, Ley Concursal de Costa Rica, art. 42, 2021-04-14 official text · verified 2026-10-29

9. A foreign representative may ask the Sala Segunda of the Supreme Court to recognise a foreign insolvency proceeding, filing a certified copy of the opening decision or a court certificate and a statement of all foreign proceedings.Ley 9957, Ley Concursal de Costa Rica, art. 67, 2021-04-14 official text · verified 2026-10-29

10. After foreclosing collateral, the court may fix the unpaid balance and creditors may pursue other assets or ask for a concurso in the same file.Ley 9342, Código Procesal Civil, art. 170, 2016-02-03 official text · verified 2026-10-29

Worked example

A Costa Rican importer enters concurso owing US$100,000.00 (₡45,482,000) to a foreign supplier on open account. The supplier's collection case is suspended, its claim is converted to colones at the official selling rate on the opening date unless governed by foreign law, and it ranks as a common claim. A proposal paying in full over five years needs at least 65% of the capital votes plus a majority of creditors present.

Step by step

Monitor publications: the 15 day term to appear runs from the newspaper notice.
Legalise the claim with supporting documents unless it is already on the intervenor's list.
Ask for adequate security or termination if the debtor keeps a contract running that exposes you.
Vote on proposals, checking which capital majority applies to the haircut and term offered.

Common traps

Interest stops on unsecured claims from the opening date (art. 19.2).
Foreign currency claims are frozen in colones at the opening rate unless the contract is governed by foreign law (art. 19.1).
Claims of related parties are subordinated (art. 34.5).
Secured creditors contribute 10% of collateral proceeds to a reserve for labour and similar claims when other assets fall short (art. 34.2).

Sources

← Amparo and constitutional challenges in Costa Rica: the Sala Constitucional, two month deadline, suspension and damagesConsumer claims in Costa Rica: strict liability, the Comisión Nacional del Consumidor, six month deadline, conciliation and fines in salarios base →

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