It is possible to leave debts behind and start a new stage without this financial burden. The Positive Balance explains how the process works.
If your debts have piled up and you have no choice but to become insolvent, know that this situation, although difficult, does not prevent you from starting over in your financial life. The process requires some sacrifices, but allows for a new phase without debt.
Although filing for insolvency is often the final step in an over-indebtedness process, there are cases in which it can be a way of changing your life.
In some cases it is even possible that there is something similar to a pardon for part of the debts. Although it is not possible in all situations and must be authorized by a judge, this form of insolvency can help those who are in a difficult situation and do not have the assets to pay everything they owe.
The law was recently amended, reducing the period in which the debtor is in assignment from 5 to 3 years. That is, when you no longer have control over your income, leaving the management of assets to a fiduciary. The objective is to guarantee that a good part of these incomes are handed over to the creditors.
After this phase, you can start over without the burden of debt. O Positive Balance explains to you all stages of the process, as well as the necessary requirements to be able to apply for insolvency with discharge of liabilities.
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O Positive Balance is Caixa Geral de Depósitos’ financial literacy website and aims to make life easier for the Portuguese with regard to money management with the regular publication of articles, news, guides and infographics.