La Era
Apr 17, 2026 · Updated 10:48 AM UTC
News

Talca Appeals Court Halts Collection and Seizure Efforts Over CAE Student Loan Debt

A court in Talca has granted an injunction to protect the financial stability of a debtor who allocates a significant portion of their income to child support payments.

Valentina Reyes

1 min read

The Talca Court of Appeals has ordered a halt to collection and seizure proceedings against a debtor of the State-Guaranteed Loan (CAE) in a case brought against the General Treasury of the Republic (TGR).

The court granted an injunction (recurso de no innovar) filed by the affected individual to prevent the execution of enforcement measures. The ruling aims to protect the petitioner's assets against actions deemed excessive.

According to reports from biobiochile.cl, the plaintiff argued that the Treasury's measures were disproportionate. The individual stated that proceeding with the collection or seizure "is disproportionate and poses a grave threat to my economic stability and that of my family."

Debtor's financial situation

The petitioner detailed that their monthly income amounts to 1.6 million pesos. However, a large portion of this amount is already committed to legal and financial obligations.

According to the evidence presented, more than half of their income is dedicated to child support payments and loan installments. For this reason, the debtor maintained that any seizure would cause significant hardship to their livelihood and that of their family.

After reviewing the case details, the court's ministers decided to uphold the injunction, immediately paralyzing all collection efforts.

The General Treasury of the Republic now has eight days to present the necessary documentation to validate the original seizure order.

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