Decree Law No. 105/2020
- Issuer: Presidency of the Council of Ministers
- Diploma Type: Decree Law
- Number: 105/2020
- Pages: 3 - 9
Summary in plain english
This decree-law establishes the Public System of Support for Conciliation in Over-indebtedness (SISPACSE) and lays down the rules on its organisation and operation.
It also creates the figure of the conciliator of the SISPACSE and regulates the rules for access to and exercise of the conciliation activity.
Given the public health emergency of international scope, declared by the World Health Organization on 30 January 2020, as well as the classification, on 11 March 2020, of the COVID-19 disease as a pandemic, the Government has been approving a set of extraordinary and urgent measures in several matters.What is going to change?
The SISPACSE may be used by debtors, natural persons, resident in national territory, who are in default (i.e. late payment), imminent, or at risk of definitive non-compliance with obligations of a pecuniary nature, regardless of acting as consumers.
Debtors who, at the date of filing of the application, have insolvency proceedings or special revitalisation proceedings pending, or special proceedings for a payment agreement, may not make use of the SISPACSE.
The SISPACSE is a public alternative dispute resolution system, for voluntary adhesion. Its purpose is to provide the debtor and his/her creditors with a negotiating moment in order to reach a fair resolution of the dispute.
The management of the SISPACSE is the responsibility of the Directorate-General for Justice Policy (DGPJ).
An information session is mandatory, with the aim of clarifying the debtor and his/her creditors on the objectives to be achieved through the SISPACSE. This session is carried out by the conciliator.
The following may be conciliators:
- The mediators of the public mediation systems managed by the DGPJ;
- The mediators registered on the lists of mediators of the peace courts;
- Conflict mediators on the list of mediators organised by the Ministry of Justice;
- Entities recognised for providing support in the area of over-indebtedness.
The conciliator appointed to accompany the debtor will make every effort to reach an agreement that satisfies the interests of all the parties involved in order to prevent situations of over-indebtedness.
The negotiation process can be conducted in person or at a distance.What advantages does it bring?
This decree-law is intended to give the debtor a system that will promote the swift and fair resolution of disputes.
This system is characterised by impartiality, speed and reduced costs, with a view to redressing the debtor's financial balance.When does it enter into force?
This decree-law enters into force 60 days following its publication.
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