Once the auction has been duly approved and is firm, the executing party must present what is known as the final settlement of the amounts owed by the defendant.

The settlement of the amounts owed will contain:

• Capital Due
• Interest indicating the type
• The period that the interest covers
• Estimate of legal fees
• Expenses incurred in the process

The judge will give a hearing for three days to the defendant and will subsequently decide.

The order of allocation of payments will be:
a) Costs
b) Interest
c) Payment to the main debt

In case of remainder, this will be delivered to the debtor.

Overdraft Balance:

The overdraft balance is the unpaid amount that has not been covered by the foreclosure. That is, once awarded, the amount is not enough to cover the total amount owed.
When there is an overdraft balance, the creditor may pursue other assets of the debtor within the same file for the purpose of satisfying said amount.

Unsatisfied lower grade creditors may collect what is owed to them in the same file; For this, separate files will be formed for each one and will initially contain the resolution establishing the amount owed.

Once the overdraft balance has been declared firmly, and if there are lower-grade creditors whose debt was not satisfied by the auction proceeds, they will retain a liquid and enforceable credit that they can collect by seizing other assets to eventually be auctioned.

At ERP Lawyers we have a team of experts in judicial collection processes. In case you have questions or queries on this matter, we invite you to contact us at info@erplawyers.com where we will gladly assist you.