Debts and Inheritance: can heirs access the deceased’s over-indebtedness proceedings?

In a decision dated 31 July 2026, the Genoa Court of Appeal addressed an issue of particular relevance in the context of over-indebtedness proceedings: can heirs apply for the controlled liquidation of the estate of a debtor who died before initiating the proceedings?

The case concerned two heirs who, after accepting their father’s inheritance subject to the benefit of inventory, applied for the opening of controlled liquidation proceedings in respect of the inherited estate. Their father had died in a state of over-indebtedness, with liabilities consisting predominantly of tax debts. The Court of Genoa granted the application pursuant to Articles 268 and 270 of the Italian Crisis and Insolvency Code. The decision was subsequently challenged by the Italian Revenue Agency, which disputed the heirs’ entitlement to initiate the proceedings in place of the deceased.

The Genoa Court of Appeal upheld the appeal, declared the application inadmissible and revoked the controlled liquidation proceedings previously opened. In reaching its decision, the Court referred to the principle already established by the First Civil Division of the Italian Supreme Court in Judgment No. 30412 of 18 November 2025, according to which an heir who has accepted, subject to the benefit of inventory, the estate of an over-indebted consumer cannot initiate debt restructuring proceedings in place of the deceased.

According to the Court of Appeal, the same principle also applies to controlled liquidation proceedings. Acceptance of an inheritance subject to the benefit of inventory results in the separation of the inherited estate from the heir’s personal assets. The deceased’s debts may therefore be satisfied only within the limits of the inherited assets and do not place the heir personally in a state of over-indebtedness.

A further issue concerns the heirs’ standing to initiate the proceedings. Heirs cannot substitute themselves for the deceased debtor in applying for controlled liquidation, since Article 268 of the Italian Crisis and Insolvency Code grants this right to a debtor who is in a state of over-indebtedness. Heirs who have accepted the inheritance subject to the benefit of inventory do not acquire this status merely as a consequence of succession.

The Court also considered the amendments introduced by the 2024 Corrective Decree (Legislative Decree No. 136/2024). Although these amendments have strengthened the parallels between judicial liquidation and controlled liquidation, they do not allow heirs to apply for the opening of proceedings for the first time after the debtor’s death.

The position is different where the debtor personally filed the application while still alive. In such circumstances, provided that the relevant statutory requirements are met, the proceedings may continue in respect of the heirs. The distinction between the continuation of proceedings already initiated by the debtor and the opening of new proceedings at the heirs’ request is therefore essential.

The decision is of particular practical significance in inheritance cases involving substantial liabilities. In such circumstances, it is essential to assess in advance the manner in which the inheritance is accepted, the extent of the estate’s assets and liabilities, and whether the debtor had already initiated any relevant proceedings. This requires careful coordination between the instruments available under inheritance law and those provided for by the Italian Crisis and Insolvency Code.

References: Genoa Court of Appeal, 31 July 2026; Italian Supreme Court, First Civil Division, Judgment No. 30412 of 18 November 2025; Articles 33, 34, 65, 268 and 270 of the Italian Crisis and Insolvency Code; Legislative Decree No. 136 of 13 September 2024.