Overindebtedness and discharge in the consumer bankruptcy

Abstract

This paper analyses critically the discharge rule in the consumer bankruptcy procedure. The current text is overly generous and the "remedial" actions taken by judicial and administrative authorities have been unsatisfactory. Within this context, the basis for rebuild the discharge rule are the understanding, on the one hand, of overindebtedness as a social problem and, on the other hand, the discharge as a redistributive rule that its ultimate goal is to protect the honest consumer, as shown by the comparative law analysis. Seen in this light, the discharge not only modifies the function of the insolvency procedure, but also alters the law of obligation system.