The payment plan after Law 16/2022, of September 5

Abstract

The bankruptcy of a natural person debtor may be concluded by means of an agreement, by liquidation (with discharge of the unsatisfied liability, if applicable) or by means of a payment plan. This third solution to the bankruptcy of a natural person is the subject of study in this work in relation to the nature and content of the payment plan, its duration, its approval, and its possible challenge, as well as its effectiveness. Through the payment plan, a restructuring of the liability that the law considers exonerable occurs through forced reductions or deferrals in payments. The non-exonerable liability must be satisfied by the debtor when due and is not the subject of the payment plan. While debtors who hold exonerable debt can only request the revocation of the provisional concession of the benefit of the exoneration, creditors who hold non-exonerable debt maintain their actions against the debtor. As the law states, the declaratory and enforcement actions of creditors of non-dischargeable debt or of new obligations assumed by the debtor during the term of the payment plan will be exercised before the bankruptcy judge through the procedures of the bankruptcy incident. With the effectiveness of the resolution approving the payment plan, the effects of the declaration of bankruptcy cease, being replaced by those established by the payment plan itself (e.g., limitations on the debtor‘s powers of administration or disposal). However, the prohibition of accrual of interest remains, except for credits with real guarantee up to the value of the same.