STJ rules failed conciliation cannot block compulsory debt payment plans

The Superior Tribunal de Justiça (STJ) has ruled that a failed conciliation attempt should not prevent the implementation of a compulsory judicial payment plan for overindebted consumers. Minister Raul Araújo determined that if a debtor's proposed payment plan is deemed insufficient by the lower courts, the judicial process for superindebtedness must proceed to renegotiate debts through a compulsory plan.

Under articles 104-A and 104-B of the Consumer Defense Code (CDC), consumers have the right to participate in conciliation hearings to suggest payment plans compatible with their economic capacity, with a maximum term of five years. If conciliation fails, the court is mandated to establish a compulsory judicial plan to ensure the debtor can settle obligations without compromising their minimum existential needs.