The effectiveness of Law No. 14,181/2021 in the treatment of Over-indebtedness: analysis between the legal text and the practical application in the Brazilian context

Abstract

The present study investigates the effectiveness of Law No. 14,181/2021, known as the Over-indebtedness Law, in the prevention and treatment of excessive indebtedness in Brazil. Through a qualitative and quantitative methodology, which included a specialized bibliographic review, jurisprudential analysis of twenty representative decisions and a survey of socioeconomic indicators of official bodies, the research examines the first years of application of the rule. The main findings reveal significant advances in the protection of vulnerable consumers, especially through the creation of the procedure for collective renegotiation of debts and the preservation of the existential minimum. However, structural obstacles were identified that limit the full effectiveness of the law, including resistance from creditors in conciliation hearings, insufficient resources in consumer protection agencies and lack of jurisprudential uniformity. The data collected indicate that, although the state Procons have registered an average rate of agreements of 40% in renegotiation efforts, the national indicators of indebtedness remain high. The study concludes that Law No. 14,181/2021 constitutes a fundamental normative framework, but its full effectiveness depends on integrated public policies, institutional strengthening, and jurisprudential consolidation. The implications of the research suggest the need to reformulate the law's implementation strategies to maximize its protective potential.