The Chamber of Deputies approved a bill that would allow an indebted family's assets to be used as collateral for loans. In other words, if the consumer does not pay the debt, the bank can take the property in which they live so that the debt can be paid.

The proposal, which received many comments in recent days, was sent to Congress and still needs to be approved by the Federal Senate and sanctioned by President Jair Bolsonaro before coming into force.

Ministry of Economy highlighted benefits

Bill No. 4188/2021 was proposed by the Ministry of Economy and was dubbed the “New Legal Regime of Guarantees”. According to the ministry, the changes will make financing cheaper and easier and improve the business environment in the country.

The new Guarantee Framework will help citizens and companies obtain cheaper financing, in a simpler and faster way. It is yet another measure developed by the Ministry of Economy to improve the business environment and accelerate the country's path to prosperity

Ministry of Economy, published note

Currently, the consumer cannot use the property in which he resides as collateral, except in certain cases, eg B. in real estate financing, in which the assets serve as collateral for the financing itself, a property that he can use as collateral for loans. In all other cases, attachment can only occur if legally permitted.

Ministry says business environment must prosper

Ministry says the law will improve the business environment The bill was proposed by the Ministry of Economy under the name of New Legal Regime for Guarantees. According to the ministry, the changes will make financing cheaper and easier and improve the business environment in Brazil.