THE FIRST SETTLEMENT OF CRISIS BODY OF MILAN REGISTERED BY MILAN LAWYERS 

Law No. 3 of January 27^th, 2012, introduced in our judicial system a particular procedure in order to solve over-indebtedness situations for people not subject to the Bankruptcy Law, i.e. small entrepreneurs, professionals and individuals.

Article 6 of such Law defines over-indebtedness as “the lasting lack of balance between the obligations undertaken and the liquid assets available to fulfil them, or the current incapacity of the debtor to perform his commitments”.

In particular, the debtor can propose a debt restructuring agreement, based on a plan that provides deadlines and creditor’s payment methods. Moreover, it specifies potential guarantees given for the fulfilment and the possible winding-up’s modalities, in order to solve the over-indebtedness situations.

Unless the debtor applies for a qualified professional’s designation, he can address a Settlement of Crisis Body. It has different functions, such as assisting the debtor in the elaboration of the restructuring plan, or in the formulation of the proposal of the agreement. Moreover it verifies that documents and the information contained in the agreement are true and correct; it refers debtor’s communications to creditors and carries out advertising formalities and winding-up functions, if the judge places an order.

The Official Register of the Ministry of Justice contains the recognized Bodies established in Italy.

On April 4^th 2016, Italian lawyers registered the first Settlement of Crisis Body of Milan, which is the number 34 of the Official Register.

Lawyers, accountants, notaries and Public Administration (particularly Regions, Provinces/Metropolitan Areas, Cities, Universities, Chambers of Commerce) can create this kind of bodies. The Ministerial Decree No. 202 of September 24^th, establishes guidelines for members’ requirements, professional fees and duties.