Last week, the Senate approved Bill 1,805/2021, which creates rules to avoid consumer over-indebtedness. Among the biggest changes is the possibility for consumers to request in court the renegotiation of their debts with all creditors.
The measure, which is being called judicial consumer recovery, foresees that the consumer will be able to present at a hearing a payment plan with a maximum term of five years to settle all debts. Rural credit contracts, real estate financing and debts made without the intention of making the payment cannot be part of the negotiation.
Creditors who fail to attend the conciliation hearing without justification will have their debts suspended and will be compulsorily subject to the payment plan, in addition to not having priority in receiving payment of the debt.
The bill also states that a consumer's request for judicial reorganisation can only be repeated after two years from the date of settlement of the obligations provided for in the payment plan approved by the judge.
The bill awaits the President's sanction and is expected to impact around 43 million Brazilians, which means returning more than R$350 billion reais to the economy, according to data from the Order of Economists of Brazil.
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