Over-indebtedness in Consumer Relations: Legal and Social Aspects

Abstract

Over-indebtedness is the impossibility for good-faith consumers to pay debts without sacrificing their livelihood, being vital for market balance and protection of the vulnerable. This study addresses the legal aspects of Law No. 14,181/2021, specifying its treatment in Brazil. The problem questions how the new law protects human dignity and the existential minimum against structural default. The research is justified by the social and psychological impact of debt, worsened by crises like the pandemic. The goal is to solve consumer vulnerability and curb irresponsible credit. Methodologically, it uses bibliographic and documentary, qualitative, and descriptive research. It concludes that the topic is covered by Law No. 14,181/2021, but requires greater effectiveness in financial education and banking transparency to solve the cycle of economic exclusion.