The need to abandon or reformulate the Model Law on Family Insolvency in addressing the over-indebtedness of the human person

Abstract

The economic crisis as a result of COVID-19 exposes the state delay in implementing measures to address the situation of over-indebtedness of the human person, especially with respect to the protection of the dignity of the person and his family group. For this reason, legislative initiatives S-1061/20 and 3540-D-2020 with the sponsorship of some consumer associations are presented as an overcoming proposal, which in practice implies the re-entry into the national Congress of the Family Insolvency Model Law of the Office for Latin America and the Caribbean of Consumers International, which proposes an approach with a moralistic conception of excessive personal indebtedness. Since this approach has consequences on the scope and content of the guardianship, as well as ignoring the state responsibility and / or responsibility of the providers of credit and consumer finance, it is proposed to abandon binary conceptions of over-indebtedness (passive / active), as well as to reformulate these initiatives under the guiding principle of respect for the dignity of the person.