Right to Erasure in Insolvency Proceedings: Ombudsperson's Recommendation to the Minister of Justice

 Did you know that, according to current legislation, third-party access to bankruptcy case data available on the Citius Portal must cease once cases are archived and their use is limited to statistical purposes? 

This is the only way to ensure the economic and social reintegration of individuals who have experienced bankruptcy, safeguarding their dignity and data protection. 

In the context of data protection, the right to erasure, or have personal data deleted, in bankruptcy proceedings is increasingly a topic of concern for legal professionals and has gained importance on their agenda. Recently, the Ombudsman in Portugal issued a recommendation to the Minister of Justice, emphasizing the need for appropriate practices by the Institute for Financial Management and Justice Equipment (IGFEJ) in handling requests for the concealment of personal data related to insolvency cases. 

The current practices of IGFEJ have raised significant concerns, as many citizens have submitted requests for the concealment of personal data to this institution. Complaints received by the Ombudsmansince 2022 reveal substantial shortcomings, including the dissemination of incorrect interpretations of the law by the IGFEJ. One such claim is that data must remain public for a period of 10 years—a timeframe that, according to the Ombudman, lacks any legal basis. 

In its communication, the Ombudman recommended that IGFEJ: 

- Cease invoking a 10-year timeframe for the publication of personal data, as this interpretation is not supported by law. 

- Inform citizens that it is not competent to decide on requests for data removal, redirecting these requests to the appropriate authorities. 

These measures aim to align IGFEJ's practices with the principles of self-determination of information and the right to erasure. These principles are essential for allowing individuals to resume their economic and social lives without the stigmas associated with bankruptcy, thus allowing for the exoneration of residual liabilities.