Law of Over-indebtedness: what it is and what the benefits are

Are you familiar with the over-indebtedness law? What are its benefits? According to research by the National Confederation of Goods, Services, and Tourism (CNC), more than 701,000 Brazilians are in debt. But the questions are: what can I do to pay off my debts? What are the real benefits for those who want to get out of debt?

CDC (Consumer Protection Code)

Anyway, this reality may change from now on. With the changes in CDC (Consumer Protection Code) some debts will be much easier to resolve, protecting those with bad credit ratings from many abusive contract formats.

We of the GENIUZZ We have prepared a very complete article for you that will show you exactly how you can benefit from the changes made by the Brazilian government.

Firstly, it is very important for you to know that of the almost 90 million people in debt, 30 million are classified as over-indebted and all of them are certainly having great difficulty paying their debts.

After all, public policies regarding interest payments and abusive contracts really don't help at all. But let's get to it.

What is the Over-Indebtedness Law?

A federal law designed to facilitate and provide solutions for consumers with bad credit and those seeking new financing, such as loan installments or credit plan installments.

One of the strong points is the payment of debts together, you can combine all your debts into a single payment method, according to your financial situation.

Who can benefit?

• Retirees
• Pensioners
• Elderly
• Illiterates
• Any person in society in general who has debts or will incur any

Main points offered by the law

• Firstly, the consumer's right to basic credit rights
• Then negotiation of the debt in Block (total of the same before the financial institutions)
• Financial education
• Clarity on charges made improperly (application of fines to institutions that do not report all financing details)
• Responsible credit practices
• Real credit risk assessments
• Transition from debt culture to payment culture

Causes of over-indebtedness

It's very important to understand how most people get to this point. Consumers aren't always responsible. Even though many are spendthrifts, most want to get out of debt and end up in debt, leaving them powerless to resolve it.

Renegotiation

First, you can combine all your debts into one, called a renegotiation. This allows the consumer to pay based on their monthly income. The debtor must present a payment plan within their budget within five years, which will be evaluated by a judge. If not approved, a counterproposal will be presented, including amounts and terms.

Furthermore, consumers should maintain their minimum living expenses, such as housing, water, electricity, and other expenses. However, this should be 30% of their monthly salary or minimum wage.

Which agencies should be contacted?

• National Consumer Protection System (Public Defender's Office, Public Prosecutor's Office, Porcon)
• Court of Justice of your state

What debts can be negotiated?

• Water Bill
• Light
• Credit Cards
• Loans from financial institutions

Debts not included in the refinancing

• Luxury services
• Alimony
• Housing Credit

It is very important that you know exactly what values you will propose for the negotiation, what will fit your budget and how long it will last.

But if you are in debt and really want to get out of debt quickly and easily, click below and change your financial life once and for all.

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