Attorney Tania Olivera said the legal process for debt renegotiation can help Chilean borrowers avoid the seizure of their salaries.

This guidance comes as a critical resource for thousands of citizens facing financial instability due to student loan obligations. For many, the ability to restructure debt represents the only path to maintaining a basic standard of living while fulfilling legal obligations.

During an appearance on the program "Buenos Días A Todos" on June 8, 2026, Olivera said the procedures available through the Superintendency of Insolvency and Entrepreneurship [1]. She focused on the mechanisms that allow debtors to re-evaluate their payment plans through a formal administrative process [1].

The need for such clarity is highlighted by the scale of the current crisis. More than 1,500 borrowers of the Crédito con Aval del Estado, known as CAE, have already been affected by salary garnishments [3]. These embargos often occur when borrowers fail to meet payment terms, leading to court-ordered deductions from their monthly earnings [3].

Olivera said that the renegotiation process serves as a legal alternative to avoid these aggressive collection measures. By engaging with the Superintendency, debtors can seek a structured agreement that reflects their actual financial capacity [1]. This process is designed to provide a legal shield against the immediate seizure of funds while establishing a sustainable repayment schedule [1].

Olivera said that understanding the timing and the specific requirements of the Superintendency is essential for those already facing legal action [2]. The process is intended to balance the rights of the creditor with the survival of the debtor, ensuring that the repayment of the state-guaranteed loan does not result in total financial collapse [2].

“More than 1,500 borrowers of the Crédito con Aval del Estado have already been affected by salary garnishments.”

The rise in salary garnishments for CAE borrowers indicates a growing tension between state-backed lending and the economic reality of graduates in Chile. By promoting the use of the Superintendency of Insolvency and Entrepreneurship, legal experts are attempting to shift the resolution of these debts from the judiciary to an administrative framework, which may reduce the burden on the court system while preventing widespread insolvency among young professionals.