Preferential Bankruptcy of Banks: What Article 216 of the Bankruptcy Law Says

Preferential bankruptcy is a highly relevant issue in Italian bankruptcy law, especially when it comes to financial institutions like banks. In this article, we will explore what Article 216 of the Bankruptcy Law establishes and what the interpretations and provisions of the Supreme Court regarding it are. If you are involved in a case of preferential bankruptcy or wish to better understand the legal context, continue reading to discover all the necessary information.

What is Preferential Bankruptcy?

Preferential bankruptcy occurs when a debtor in a state of bankruptcy makes payments or grants guarantees in favor of certain creditors to the detriment of others. This behavior violates the principle of par condicio creditorum, which ensures fair treatment among all creditors.

"Preferential bankruptcy is considered a punishable offense with severe penalties, as it alters the order of payment established by law."

Article 216 of the Bankruptcy Law

Article 216 of the Bankruptcy Law regulates various aspects of fraudulent bankruptcy, including preferential bankruptcy. It establishes the circumstances under which a debtor can be found guilty of intentionally favoring certain creditors. Penalties may include imprisonment and fines, making preferential bankruptcy a very serious offense.

• Prohibited behaviors: Making undue payments, granting guarantees, or performing acts that alter the order of payment.
  
• Aggravating conditions: If the behavior was willful or intended to defraud creditors.

The Provisions of the Supreme Court on Preferential Bankruptcy

The Supreme Court has repeatedly expressed its views on preferential bankruptcy, providing interpretations that refine the understanding of this legal concept. The Supreme Court has emphasized that proof of intent is essential for conviction and that the debtor's intention and awareness of having violated the rules must be demonstrated.

Legal Principles Established by the Supreme Court

The Supreme Court has clarified some key principles related to preferential bankruptcy:

• The necessity of proving specific intent, that is, the intention to favor one creditor to the detriment of others.
• The importance of proving the awareness of the debtor regarding their actions and their consequences.
• The possibility of mitigating factors if the behavior was dictated by necessity or urgency.

How the Bianucci Law Firm Can Help You

Understanding the legal implications of preferential bankruptcy can be complex. The Bianucci Law Firm, led by Attorney Marco Bianucci, specializes in bankruptcy law and offers expert advice to address these challenging situations. Our team of professionals is ready to assist you by analyzing your specific case and providing tailored legal strategies.

If you need legal assistance or wish for further clarification on how preferential bankruptcy may affect your situation, do not hesitate to contact the Bianucci Law Firm. We are here to help you navigate the legal complexities and protect your rights.