Over-indebtedness, Fdi proposal: up to 180 days' stop to foreclosures

Up to 180 days of protection from enforcement action for those trying to get their finances in order. It is the cornerstone of the bill presented to the Chamber by Fratelli d'Italia deputy Letizia Giorgianni, which intervenes on the Business Crisis Code to protect families and small entrepreneurs in difficulty without sacrificing the rights of creditors.

The suspension of foreclosures would not be automatic: verification by the competent body and control by the judge would be necessary. For Giorgianni "debts can be paid, but an economic difficulty cannot turn into a life sentence", and those who "are seriously looking for a solution" must be given the time to build it.

The text provides for more flexible repayment plans, commensurate with income. The scope of consumer debt restructuring is also expanding. Former entrepreneurs and professionals who have stopped working for at least six months could access it, under certain conditions, also for professional exhibitions. During the liquidation, the judge could also exclude the debtor's only car, if its value does not exceed 10 thousand euros and is essential for work, health or school.

Then there is a simplification chapter. The required documentation would be limited to five years. The report from the competent bodies should arrive within 120 days, with a possible suspension of 30. Defined times which, in the intentions of the proponent, serve to prevent the protections from remaining on paper, because "a right that arrives too late risks, in fact, becoming a denied right". The proposal now begins its process in Montecitorio.