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Consumer debt restructuring (consumer plan): requirements, content and what the judge decides

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In breve: the debt restructuring of the consumer, which many still call the consumer plan (piano del consumatore), is the procedure through which a natural person who has incurred debts for purposes unrelated to a professional activity proposes to creditors, with the assistance of the OCC, to pay in different times and ways, including partially (art. 67 of the Codice della crisi). The application is filed with the court through the OCC (art. 68); art. 69 lists the conditions that exclude it, and arts. 70-73 govern opening, court confirmation (omologazione), performance and revocation.

What the plan may provide

The content of the plan is free: payment times and methods are those the consumer proposes, with partial repayment of creditors as the normal case. The text also allows the restructuring of debts from loans secured by salary assignment (cessione del quinto), severance pay (TFR) or pension, and from loans against pledge. The plan must, however, rest on real figures: the share of income actually available after the expenses necessary for the maintenance of the household, any assets to be made available, and help from third parties.

The application and the role of the OCC

The application is filed with the judge through an OCC established in the district of the competent court; if there is none, the president of the court appoints a professional to perform its functions (art. 68). The application must be accompanied by the OCC report, which states the causes of the indebtedness and the diligence used in taking on the obligations, the reasons for the inability to pay, the assessment of the completeness and reliability of the documentation and the cost estimate. It must also state whether the lender assessed the debtor's creditworthiness, taking into account the income available after deducting a dignified standard of living: an amount not lower than the social allowance multiplied by the ISEE equivalence scale parameter for the number of household members is considered suitable. Here is the guide to the OCC.

Practical effects to know

Filing the application suspends, solely for the purposes of creditor concurrence, the accrual of contractual or statutory interest until the procedure is closed, with the exception of claims secured by mortgage, pledge or privilege. Within seven days of being appointed, the OCC informs the collection agent and the tax offices, which within fifteen days communicate the tax debt ascertained and any pending assessments (art. 68). For this reason the statement of tax collection notices is among the first documents to request.

Who cannot access it

Art. 69 excludes a consumer who has already been discharged in the five years before the application, who has already benefited from discharge twice, or who caused the over-indebtedness through gross negligence, bad faith or fraud. A creditor who culpably caused or aggravated the indebtedness, or who breached the principles on creditworthiness (art. 124-bis of the Consolidated Banking Act, Testo unico bancario), may not oppose court confirmation by challenging the convenience of the plan. Further reading: deservingness, gross negligence and bad faith.

Are you really a consumer?

If the debts arise in part from a business activity, the status is not a given: for anyone who has run a sole proprietorship, held a VAT number (partita IVA) or held a share in a company, it must be verified on the specific case. If you are not a consumer, the route is the minor composition agreement or controlled liquidation. The file you prepare includes the data needed for this assessment (positions and shares in companies from the Business Register).

This guide explains the law in general terms and is not legal advice: anyone in over-indebtedness needs a professional who looks at their case and the law currently in force.

Before you see the lawyer, get your case in order: the free questionnaire collects creditors, income, expenses, assets and acts of the last five years; the Over-indebtedness report at 29€ checks them against public data in your name (protests, procedures, encumbrances, positions held, shares, property) and gives you the PDF to hand to the professional. It is not legal advice, nor the OCC report.

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Frequently asked questions

What is consumer debt restructuring?

It is the procedure under art. 67 of the Codice della crisi (the Italian insolvency code) through which the over-indebted consumer proposes to creditors, with the assistance of the OCC, a payment plan with its own timing and terms, which may be partial.

Can a partial repayment of debts be proposed?

Yes, the plan has free content and may provide for partial satisfaction. It may also cover debts from salary-assignment loans (cessione del quinto), severance pay (TFR) or pension-backed loans, and loans secured by pledge.

Who files the application with the judge?

The application is filed through an OCC established in the district of the competent court; in its absence, the president of the court appoints a professional who performs its functions (art. 68).

When can a consumer not access the procedure?

If they have been discharged in the five years before, if they have already obtained discharge twice, or if they caused the over-indebtedness through gross negligence, bad faith or fraud (art. 69).

Do interest charges continue to accrue after the application?

No, solely for the purposes of creditor concurrence: filing suspends the accrual of contractual or statutory interest until the procedure is closed, except for claims secured by mortgage, pledge or privilege (art. 68).

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Further reading on this topic