The over-indebtedness is a condition of financial imbalance that occurs when a person can no longer meet his debts with his available income and assets. It becomes an unbearable burden that generates anxiety and compromises the peace of mind of entire families, professionals and small businessmen. If you are in a situation of over-indebtednessit is crucial to know that you are not alone and that the law offers a concrete way out. The Crisis and Insolvency Code (which replaced the old Law 3/2012, known as the 'Suicide Prevention Act') has created over-indebtedness procedures specific to help you restructure your position and get a clean start.
Studio Cappuccio, with its expertise in business and personal crisis, is the expert guide to tackle this path and regain your financial freedom.
What is over-indebtedness crisis?
La over-indebtedness crisis is the state of economic and financial difficulty that makes it likely that the debtor will become insolvent, i.e. permanently unable to fulfil its obligations regularly.
This condition does not apply to large companies, but was designed specifically to protect 'non-bankrupt' entities, i.e:
- Consumers and families.
- Professionals registered and self-employed.
- Small entrepreneurs commercial enterprises not subject to compulsory liquidation.
- Simple companies and professional companies.
- Start-up innovative.
- Non-profit organisations.
The over-indebtedness has a meaning precise: to give a 'second chance' (fresh start) to those who are crushed by debts, allowing them to pay what they can and have their remaining debts written off (debt relief).
Over-indebtedness procedures: what solutions exist
The law provides for three different over-indebtedness proceduresdesigned to adapt to different situations.
The choice of over-indebtedness practice most suitable depends on the nature of the debtor and the objectives.
- Restructuring of consumer debts: Reserved exclusively for consumers, it allows them to submit a repayment plan based on their capacities, which does not require the approval of creditors but only the approval of the court.
- Minor Concordat: Aimed at professionals and small businesses, it is an agreement proposed to creditors that, if approved by a majority, becomes mandatory for all. It is the ideal tool for those who have a business to safeguard.
- Controlled liquidation of assets: It is the solution for those who are unable to submit a repayment plan. It provides for the sale of one's assets (except essential ones) to pay creditors. At the end of the procedure, which lasts three years, one is released from all residual debts.
How over-indebtedness works
Facing a over-indebtedness procedure follows a well-defined path and requires the assistance of specialised figures. The basic steps are:
- Debt situation analysis: The first step is a complete mapping of all debts, income and assets, carried out with the help of an expert advisor.
- Drafting the plan: The accountant, as advisor, drafts the recovery plan or proposal to be submitted, making sure that it is sustainable and complies with the law.
- Assistance from the OCC: The file is managed with the help of a Crisis Resolution Body (CBO)a third, impartial body that verifies the correctness of the documentation and assists the debtor.
- Filing in the Court: The application is filed with the court, which after the appropriate checks approves the plan or opens the liquidation, making the procedure effective.
The role of Studio Cappuccio in the over-indebtedness crisis
In these institutions, the role of the accountant is crucial. We do not limit ourselves to an accounting analysis, but act as true strategists of your financial recovery.
Our task is:
- Assessing your over-indebtedness situation to determine the most suitable procedure.
- Drawing up or swearing in recovery plansensuring that they are credible and acceptable to the court and the creditors.
- Assisting you in dealing with the OCC and with the other professionals involved (lawyers, etc.).
- Guiding you step by step all the way from the submission of the application to the final decree of exoneration.
Facing a over-indebtedness crisis is not a defeat, but a path to recovery provided by law.
Contact us to analyse your situation and discover the best solution for you. Studio Cappuccio can also be contacted for:
- Minor composition and debt restructuring
- Negotiated crisis resolution
- Other forensic activities
