Over-indebtedness, Giorgianni (FdI): streamlined procedures and clear rules to protect deserving debtors
The MP has tabled a bill to improve the implementation of the Code on Corporate Crisis and Insolvency
“Over-indebtedness refers to a situation where a person or household is no longer able to meet their debt repayments on a regular basis in line with their financial means. Very often, we are talking about people who are otherwise deserving, whose only ‘fault’ – so to speak – was falling ill, losing their job, facing rising interest rates, or going through a separation, for example. So there must be clearer rules and more streamlined procedures for them, because it is important that policymakers help them to operate within the bounds of economic legality.” Speaking is MP Letizia Giorgianni (FdI) , the lead signatory of a bill aimed at making the safeguards provided for in the Code on Corporate Crisis and Insolvency more effective and practical for deserving debtors.
Potential audience of 3 million households
“The number of people potentially affected by over-indebtedness,” Giorgianni explains to Parlamento 24, ‘is considerable’, estimated at around three million Italian households ‘who are exposed to these conditions of economic vulnerability and who, in any case, may well need this opportunity to be able to re-enter the system and the economic cycle’.
Among the strengths of AC 2885, Giorgianni highlights in particular ‘those provisions which seek, in some way, to remedy the critical issues that have emerged in the application of the regulations’. For example, to protect debtors wishing to access over-indebtedness procedures, the provision for a 180-day moratorium on enforcement proceedings and various seizures against them: ‘A period during which they are protected, allowing the court to carry out these proceedings’.
