The Government announced the reactivation of the collection from CAE debtors with incomes over $1. 5 million. Experts explain how the State can demand payment, including administrative and judicial mechanisms.

The Government announced the reactivation of CAE collection for debtors with incomes exceeding $1. 5 million. According to experts, the State can enforce payment through the General Treasury of the Republic, using administrative and judicial mechanisms such as withholdings, compensations, and seizures in Chile.

The collection of the State-Guaranteed Credit (CAE) is back at the center of the debate. Years after a limited application, the Executive announced measures to reactivate the pursuit of this debt, focusing on those with the capacity to pay. Government reactivates CAE collection: how the mechanisms to demand debt operate The announcement was made by Finance Minister Jorge Quiroz, who confirmed that the Government will move forward with the collection from CAE debtors who report gross incomes above $1.

5 million. This measure involves reactivating a mechanism that, as indicated, has had limited application since 2017, despite the State having tools to demand payment. According to Flavia Cilveti, an academic at the Faculty of Law at the University of the Andes, once the credit goes into default and the state guarantee is activated, the debt becomes enforceable by the treasury.

In this scenario, the General Treasury of the Republic (TGR) is the entity responsible for carrying out the collection p…

In the administrative stage, the State can apply measures such as withholding tax refunds and compensations, tools that allow for recovering part of the debt without the need to go to court. However, if the process advances, there are also judicial mechanisms. In that case, the TGR can initiate legal actions to demand forced payment of the obligation.

From withholding to seizure: what can happen if the debt remains unpaid When the CAE debt is not settled, the State can resort to specific judicial procedures. Cilveti explained that these are executive trials, designed to demand compliance with obligations more directly. In this type of process, the General Treasury of the Republic can file a lawsuit in civil courts, requesting an execution order and seizure of the debtor's assets.

“The debtor is required to pay, and if they do not pay or raise legal exceptions within the established timeframe, the execution proceeds directly,” detailed the academic. This means that, if there is no response or defense during the process, it can advance to the seizure and eventual auction of assets as a way to settle the outstanding debt. Regarding notification, the general rule is that it is done personally, through a judicial receiver at the debtor's address.

However, if this is not possible, the legislation provides alternatives. These include notification by summons or even notification by announcements, in certain cases, allowing the judicial process to continue even when the debtor cannot be directly located. An existing mechanism, but with low application in previous years Despite the State having these tools, academics point out that the problem has not been a lack of powers, but their use.

According to Cilveti, there has been low pursuit of defaults for years, which has limited the effectiveness of CAE collection, even though legal mechanisms have been available. In this context, the reactivation announced by the Government aims precisely to make greater use of these tools, especially in the case of debtors with the capacity to pay. The focus, as inferred from the statements, is to advance in the recovery of these resources using the instruments already provided by current regulations, in a scenario where CAE collection is once again a central topic on the public agenda.

Frequently asked questions about CAE collection Who is responsible for collecting the CAE debt? The collection is handled by the General Treasury of the Republic, which acts when the debt becomes enforceable by the State. What measures can the State apply to collect the CAE?

It can use administrative mechanisms, such as tax withholdings, and judicial measures, including lawsuits, seizures, and auctions of assets. What happens if I do not pay the CAE debt? If the debt remains unpaid, the State can initiate an executive lawsuit that could lead to the seizure and eventual auction of the debtor's assets.