Insolvency proceedings

The underlying question is quite simple, if a person incurs debt to financially assist their family and financially help his family and be classified as culpable be classified as guilty Here, the main character was a pensioner who received around 1,949 euros net per month and, between 2019 and 2020,

requested financing requested funding job instability arising during the Covid-19 arisen during the pandemic should be fortuitous (i. e., without relevant fault). However, the Public Prosecutor's Office requested that it be declared culpable , and both the commercial court and the provincial court ruled in favor, considering that the debtor had worsened the insolvency in a seriously negligent manner. The debtor appealed to the Supreme Court (TS). grossly negligent . The debtor appealed to the Supreme Court (SC).

The Supreme Court rules in favor and declares the fortuitous bankruptcy . It acknowledges that going into debt to help the family contributed to insolvency , but makes it clear that this is not enough, if the rating is based solely on the "general type", not only the relationship between conduct and insolvency must be considered, but to demonstrate also intent or gross negligence. The Supreme Court rules out intent (does not see intention to provoke or worsen insolvency) and also the gross negligence , because the indebtedness is not considered disproportionate to their income and had a assistance purpose linked to an exceptional family need in the context of the pandemic. Although there might have been some negligence in not accurately assessing the real repayment capacity, it does not perceive that lack of minimum diligence that would require speaking of gross negligence.

If you find yourself in a situation similar to the one described, our professionals can provide you with timely assistance and take whatever actions may be relevant.