Exoneration of remaining liabilities: Income excluded from the transfer - Article 239(3)(b) of CIRE

Abstract

Insolvency law has been the subject of increasing attention and debate in the Portuguese legal system. This study explores the issue of the discharge of remaining liabilities, a fundamental mechanism in the financial rehabilitation process of individuals facing insolvency.

Given that the discharge of remaining liabilities continues to raise uncertainties in Portuguese courts, as reflected in varying judicial decisions, particular focus will be placed on determining income exempt from assignment. This includes an analysis of the judicial interpretation of Article 239(3)(b) of CIRE, specifically the concepts of "reasonably necessary income" and "minimally dignified livelihood."

The study concludes with a critical reflection on the impact of this regime, assessing whether the "reasonably necessary income" is effectively guaranteed to the insolvent party. Additionally, considerations will be made regarding potential legislative amendments to ensure that the Portuguese legal framework does not become punitive for the key parties in the insolvency process—the debtor and the creditor.