Such situations are common in the Bolivian legal context, where creditors often see their rights frustrated due to the negligence or inaction of debtors concerning their own claims. In these cases, national legislation provides a key legal remedy: the oblique action.
WHAT IS OBLIQUE OR SUBROGATORY ACTION AND HOW CAN A CREDITOR ACT ON BEHALF OF A DEBTOR IN BOLIVIA?
Oblique action, also known as subrogatory action, allows a creditor to initiate legal proceedings in the name of their debtor when the latter fails to exercise rights that would preserve or enhance their estate, thereby harming the creditor’s interests. This legal mechanism protects the debtor’s assets—not for the debtor’s own benefit—but to ensure the fulfillment of obligations owed to creditors.
In the Plurinational State of Bolivia, this figure is particularly relevant in civil proceedings where a debtor shows negligence or disinterest in enforcing their own rights, such as collecting a debt, filing a contractual claim, or defending their property. When a creditor exercises this action, they do so not on their own behalf, but in representation of the debtor, aiming to indirectly benefit all of the debtor’s creditors.
LEGAL BASIS FOR OBLIQUE ACTION IN BOLIVIA
WHAT ARE THE BENEFITS OF OBLIQUE ACTION FOR CREDITORS FACING DEBTOR INACTION?
Oblique action is a valuable legal tool for creditors in Bolivia. Below are its main benefits and how it helps safeguard creditors’ interests when debtors act negligently or passively.
CREDIT PROTECTION THROUGH OBLIQUE ACTION
It enables the creditor to prevent the debtor’s estate from being diminished or left unprotected, thereby increasing the likelihood of recovering their claim.
COLLECTIVE BENEFITS OF OBLIQUE ACTION
The outcome of an oblique action does not benefit only the creditor who initiates it, but rather all of the debtor’s creditors, fostering collective protection of credit.
PROMOTING DEBTOR RESPONSIBILITY
It encourages diligent behavior from debtors, who are aware that their failure to act can be legally remedied by creditors through judicial channels.
PRACTICAL EXAMPLE OF OBLIQUE ACTION IN BOLIVIA
Imagine a Bolivian citizen in Tarija lends a significant amount of money to an acquaintance who has the right to claim compensation from a company for breach of contract. However, the debtor chooses to take no action. In this case, the creditor may initiate an oblique action to claim that compensation on behalf of the debtor, thereby preserving the debtor’s solvency and increasing the creditor’s chances of recovery.
Such legal tools demonstrate the Bolivian legal system’s commitment to justice and the protection of its citizens’ economic rights.
Need to protect your credit from a debtor’s inaction? Contact us today for expert legal advice tailored to your case.
Frequently Asked Questions (FAQs)
CAN ANY CREDITOR FILE AN OBLIQUE ACTION?
Yes, as long as their credit is at risk due to the debtor’s inaction and the rights involved are related to assets and not strictly personal.
IS A PRIOR COURT JUDGMENT REQUIRED TO FILE THIS ACTION?
No, but there must be a clear right belonging to the debtor that is not being exercised, as well as a legitimate interest on the creditor’s part.
WHAT IF THE DEBTOR OPPOSES THE ACTION?
The debtor will be cited and may raise objections during the process, but this does not automatically prevent the creditor from proceeding if legal requirements are met.
CAN THE CREDITOR EXCLUSIVELY BENEFIT FROM THE RECOVERED ASSETS?
No, the benefits of oblique action are shared among all of the debtor’s creditors.
IS THE USE OF THIS REMEDY COMMON IN BOLIVIA?
While not yet widely used, its application is increasing, especially in cases where the debtor’s estate is at serious risk due to negligence.
- Civil Code of the Plurinational State of Bolivia
- Gamarra, R. (2020). Derecho Civil Patrimonial. La Paz: Editorial Jurídica Boliviana.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
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