President Jair Bolsonaro (PL) signed a decree that regulates the rules relating to “over-indebtedness”. The decree, published in the “Official Journal of the Union” this Wednesday (27), establishes that the minimum existential value will be 25%, which represents R$ 303considering the current minimum wage, currently at R$ 1,212.
The decree, which takes effect in 60 days, regulates the preservation and non-commitment of the existential minimum for the purposes of prevention, treatment and conciliation, administrative or judicial, of situations of over-indebtedness in consumer debts. This means that, when negotiating this type of debt, it must be guaranteed that the citizen will have at least R$ 303 preserved for their subsistence..
The existential minimum guarantee is the minimum amount of a person’s income to pay basic expenses and that cannot be used to pay off debts. This measure prevents consumers from incurring new debts to pay basic bills, such as water and electricity.
The idea is not to promote default, but rather the payment of the debt with a part of the remuneration, without exploiting the indebted.
Not all debts will be taken into account when calculating the existential minimum. Real estate financing installments, for example, do not enter the account.
Understand the law of over-indebtedness
The law that amends the Consumer Code came into force in July last year and establishes a series of measures to avoid the so-called “over-indebtedness”.
Law 14,181/21 increases the protection of those who have many debts and cannot pay them and creates some instruments to contain abuses in the supply of credit.
Those who take out credit, but are totally unable to honor their financial commitments, whether due to unemployment, illness or any other reason that impacts the budget, will have better negotiation conditions.
The new law also determines that banks are prohibited from hiding the real risks of taking out a loan. Banks, financing companies and any institution that sells on installments are obliged to inform the total costs of the contracted credit. Information such as interest, fees, fees and late charges must be informed in advance.
With the law, any type of harassment or pressure to seduce consumers, involving prizes, for example, becomes illegal. Mainly for elderly, illiterate or vulnerable people.
It will also be possible to renegotiate debts with all creditors at the same time. The idea is to ensure a fairer deal for consumers, as is done when companies go bankrupt. The over-indebted person may ask the Judiciary to initiate a process to review the contracts and present a payment plan with a maximum term of five years.
Learn to identify the signs of over-indebtedness and how not to fall into this situation