Define: Cessio Bonorum

Cessio Bonorum is a legal process in which a debtor voluntarily surrenders their assets to their creditors in order to discharge their debts.

Any individual who is unable to pay their debts and is facing financial hardship can apply for Cessio Bonorum.

Once the debtor applies for Cessio Bonorum, a court-appointed trustee will take control of their assets and distribute them among the creditors. This process allows the debtor to be released from their debts.

Most unsecured debts, such as credit card debts, personal loans, and medical bills, can be discharged through Cessio Bonorum. However, certain debts, like child support, alimony, and student loans, are generally not dischargeable.

Yes, Cessio Bonorum will have a negative impact on your credit score. It will remain on your credit report for several years, making it difficult to obtain credit in the future.

In most cases, the debtor will have to surrender all their assets to the trustee. However, certain exemptions may apply, allowing the debtor to retain essential items like clothing, household goods, and a modest vehicle.

Yes, creditors have the right to object to the Cessio Bonorum application. They can challenge the debtor’s eligibility or the proposed distribution of assets.

In most jurisdictions, a debtor can only apply for Cessio Bonorum once in their lifetime. However, specific rules may vary depending on the jurisdiction.

Cessio Bonorum will discharge most of your unsecured debts, but it may not eliminate all of them. Certain debts, such as those incurred fraudulently or through criminal activities, may not be discharged through this process.