Corte di Cassazione rules on mortgage nullity in bankruptcy

The Italian Court of Cassation has ruled on the validity of mortgage privileges in the context of bankruptcy proceedings. In ordinance no. 25519/2026, the First Civil Section declared an appeal by a cooperative credit bank inadmissible.

The dispute arose after a delegated judge excluded a mortgage privilege related to unpaid mortgage installments from 2009. The exclusion was based on the objective uncertainty regarding the identity of the property secured by the mortgage, as discrepancies between the building and cadastral data were discovered during a technical assessment. The court determined that the property partially overlapped with third-party ownership, a factual matter that cannot be re-examined by the Court of Cassation.