Over-indebtedness: Fdi proposal – up to 180 days’ suspension of repossessions

Up to 180 days’ protection from enforcement proceedings for those trying to get their finances back on track. This is the cornerstone of the bill tabled in the Chamber of Deputies by Letizia Giorgianni, an MP for Fratelli d’Italia, which amends the Corporate Crisis Code to protect families and small business owners in difficulty without compromising the interests of creditors.

The suspension of repossessions would not be automatic: it would require verification by the relevant body and review by a judge. According to Giorgianni, ‘debts must be paid, but financial hardship cannot become a life sentence’, and those who ‘are seriously seeking a solution’ must be given time to work one out.

The bill provides for more flexible repayment plans, tailored to income. It also broadens the scope of consumer debt restructuring. Former business owners and self-employed professionals who have ceased trading for at least six months may, under certain conditions, be eligible for this scheme, including for professional liabilities. In the event of liquidation, the judge may also exempt the debtor’s only car, provided it is worth no more than 10,000 euros and is essential for work, health or education.

There is also a section on simplification. The documentation required would be limited to five years. The report from the relevant bodies should be submitted within 120 days, with a possible 30-day extension. These defined timeframes, in the proposer’s view, are intended to prevent safeguards from remaining merely on paper, because ‘a right that arrives too late risks, in practice, becoming a right denied’. The proposal now begins its passage through the Chamber of Deputies.