The House of Representatives has approved a bill that would allow assets of a debt-ridden family to be used as collateral for loans. In other words, if the consumer fails to pay the debt, the bank can seize the property in which the debt is paid.

The proposal, which has 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 effect.

Ministry of Economy pointed out benefits

Bill No. 4188/2021 was proposed by the Ministry of Economy and was dubbed the “New Legal Regime for 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 towards prosperity.

Ministry of Economy, published note

Currently, the consumer cannot use the property in which he resides as collateral, except in certain cases, e.g. B. in real estate financing, where the assets serve as collateral for the financing itself, a property that he can use as collateral for loans. In all other cases, the seizure may only take place if it is legally permitted.

Ministry says business environment must thrive

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