Indebted who negotiate debt will have a minimum income of R$ 303; understand

The government established a existential minimum 25% of the current minimum wage for the over-indebted. The decision benefits Brazilians at the time of debt renegotiation to settle overdue debts.

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This means that the creditor will not be able to include that portion of the debtor’s income, guaranteed so that he can survive, in the negotiation of arrears. Considering that the country’s minimum wage is currently R$1,212, the existential minimum remains at R$303 until January 2023.

The device, which is already provided for in cases of companies in a situation of serious indebtedness, was extended to individuals. From now on, the over-indebted customer who is negotiating the payment of the debt with banks or other creditors will have this minimum percentage removed from the calculation.

The purpose of the measure is to prevent the individual from contracting new debts while paying the previous ones, considering that the worsening of this type of situation is a trend. The document regulates the Over-indebtedness Law, which still did not provide for a value for the existential minimum.

Brazil currently has more than 60 million in debt and 30 million are over-indebted.

Controversy

Specialists say that no Brazilian can live with this amount, although the value is not subject to future adjustments. “No person is able to survive on this amount, which is equivalent to R$ 10.10 a day. This decree is absurd, because it empties the Over-indebtedness Law that was approved to protect the consumer”, said lawyer Walter Moura, from the Brazilian Institute for Consumer Protection (Idec) in the Federal District.

Idec has plans to go to court to overturn the decree, which affects about 40 million over-indebted people. “We are studying an action”, he added.