Peruvian Debt Inheritance Law Explained: What You Need to Know

Peruvian Debt Inheritance Law Changes Explained: A recent update to Peruvian law has altered the rules surrounding debt inheritance, causing confusion among citizens. The Superintendencia de Banca, Seguros y AFP (SBS) has clarified the situation, stating that debt relief insurance ('seguro de desgravamen') is no longer obligatory for most types of loans. "The new regulation has brought some confusion," says El chico de las noticias, a popular TikToker who analyzed the SBS's statement. The change primarily impacts consumer loans, now offering borrowers the option to include or exclude the insurance. However, for mortgage loans, the insurance remains mandatory. Crucially, the law still protects families from unlimited liability. According to Article 871 and 872 of the Peruvian Civil Code, debt is settled only up to the value of the inheritance. "If someone dies with debt but no assets, their family won't be held responsible," explains El chico de las noticias. This clarification aims to alleviate concerns and ensure transparency in the financial sector.