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ARTICLE · 02 NOVEMBER 2023

Separation Of Trust Assets Under Mexican Bankruptcy Law

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In this article, the author analyzes the intricate process of separating assets that have been transferred to a guarantee trust by a settlor who later faces insolvency.

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In this article, the author analyzes the intricate process of separating assets that have been transferred to a guarantee trust by a settlor who later faces insolvency. Toward that end, the author delves into the judicial decision rendered by the Second Collegiate Court in Civil Matters of the Seventh Circuit, as it pertains to the resolution of the Amparo Directo 188/2021 case. According to the author, this decision, in direct contradiction to fundamental legal principles, inaccurately negates the validity of the separation of assets transferred to a guarantee trust. Significantly, the author adds, this decision is marked by substantial deficiencies in its reasoning and a lack of theft foundation and justification. The author concludes that, consequently, it not only breaches established legal norms but also significantly influences doctrine and legal practice.

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