Banking Law
Over-indebtedness: when installments already consume what you need for the basics each month
If loans, credit cards, and other consumer debts have started to take the income meant for housing, food, and basic bills, Law No. 14.181/2021 provides for debt restructuring that preserves the basic subsistence threshold (mínimo existencial). The review starts with the full picture: what you owe, what you earn, and what you cannot do without.
The chat opens with a ready-made message, which you can edit before sending.
- First contact via WhatsApp
- In person in Belém/PA or by video call
- Professional confidentiality from the first conversation
Do any of these situations sound familiar?
- Installments on loans, credit cards, and overdraft already take up a large part of your salary or pension.
- You use one line of credit to pay another, and the total you owe does not go down.
- After paying the installments, there is not enough left for housing, food, utility bills, or medication.
- Collection calls come from several creditors at once, and negotiating with each one separately does not solve the whole.
- You want to pay what you owe, but on terms that fit your budget.
If any of them resembles what you are going through, tell us what happened. The team will point out where to start.
Message us on WhatsAppWhen debts start to encroach on the basic subsistence threshold.
Charges, collateral, and collection methods are not always clear when credit is taken out. The effect usually appears later, when installments start to consume the income meant for basic expenses — a situation that may constitute over-indebtedness, addressed by Law No. 14.181/2021, which amended Brazil’s Consumer Protection Code and provides mechanisms for debt restructuring while preserving the basic subsistence threshold (mínimo existencial).
Contracts, bank statements, and receipts reveal the full set of debts, the available income, and essential expenses. When the share of income committed constitutes over-indebtedness, the debt restructuring request provided for in Law No. 14.181/2021 is examined, alongside direct negotiation with creditor institutions and litigation in court.
The law provides for a conciliation hearing with all creditors, in which the consumer presents a proposed payment plan with a maximum term of five years, preserving the basic subsistence threshold. If no agreement is reached with a creditor, the consumer may ask for the proceedings to continue so that the contracts are reviewed and a court-ordered plan is set. At each stage, you know what is being discussed and what depends on your decision.
Areas of work
Over-indebtedness and debt restructuring.
The starting point is the full set of consumer debts, compared with income and essential expenses. This review shows how much of the budget is committed.
The review brings together all consumer debts, the available income, and essential expenses to measure how much of the budget is committed and to assess whether a debt restructuring request under Law No. 14.181/2021 is available.
What happens after you send your message.
You tell us what happened
On WhatsApp, a short summary is enough: what happened and since when. There is no need to send documents at this first stage.
The team guides the review
The firm tells you which documents to gather and schedules the review meeting, in person in Belém/PA or by video call.
You learn the possible paths
With the documents in hand, the firm explains the available alternatives, their risks, and the steps involved in each one. The decision to move forward is yours.
What helps to have at hand
- Contracts and statements for the outstanding credit
- Bank statements from recent months
- Proof of income (payslip or benefit statement)
- Proof of essential expenses: housing, bills, healthcare
- A list of creditors and installments, even a handwritten one
Missing something? Send the message anyway: the list is adjusted to your case.
Message us on WhatsApp
Who assists you
MSC Advocacia — Melo Souza Cunha Advocacia e Consultoria — was founded by attorney Tainá Cunha (OAB/PA nº 36.711) and is based in Belém/PA, Brazil. Nationwide practice, with in-person and video call appointments.
Ed. EvolutionUmarizal, Belém/PA
About the firmFrequently asked questions about Banking Law.
Law No. 14.181/2021 describes an individual consumer, acting in good faith, who is clearly unable to pay all of their consumer debts, both due and falling due, without compromising the basic subsistence threshold (mínimo existencial). Whether a situation qualifies does not depend solely on the amount owed: it involves a review of each person’s debts, income, and essential expenses, and is determined case by case.
Contracts and amendments, bank statements, bills, proof of payment, proof of income and essential expenses, and collection notices received. When the client does not have the signed agreement, a copy of the contract and the debt progression spreadsheet can be requested from the financial institution — and it is prudent to gather them before drawing any conclusions.
Consumer debts that are due or falling due, such as personal loans, credit cards, overdraft, and store credit. The law itself excludes debts arising from credit agreements secured by collateral (real guarantees), real estate financing, and rural credit, as well as debts taken on with no intention to pay. The review shows which debts in your case qualify.
At a conciliation hearing with all creditors, the consumer presents a proposed payment plan with a maximum term of five years, preserving the basic subsistence threshold. Conciliation may take place in court and, depending on the case, before public consumer protection bodies. If no agreement is reached with a creditor, the law allows the consumer to request a review of the contracts and a court-ordered plan.
Have your debts started to strain your income?
The full set of debts, the monthly income, and essential expenses give a measure of what can be disputed.