Daughters inherit million-dollar debts in SC after becoming partners of companies in childhood: 'I was 5 years old when it went bankrupt,' says a young woman
Two Brazilian women recount how they became financially burdened due to business debts incurred when they were made partners as minors.
In Santa Catarina, Brazil, nearly 8,000 companies have at least one partner under 18, raising concerns about child involvement in business debts. The law permits such practices, but it poses significant risks for the minors, who often have no involvement in business decisions. Two women, Isabella Lehnen and Rafaella D'avila, share their experiences of inheriting massive debts from businesses their parents included them in as children.
Isabella, now 28, became a partner before she could even talk and had her own tax ID before her first birthday. Her awakening to the consequences came when she discovered her name was linked to a failed business and substantial debt around the age of five, leaving her grappling with financial obligations she never chose. Similar stories are common among children who were made part owners without any say in the operations or decisions of the companies.
The article sheds light on the legal implications and societal responsibilities surrounding the inclusion of minors in business partnerships. While intended to potentially help children with financial literacy and future business skills, it can lead them into predicaments where they are tethered to debts they did not create, raising ethical questions around the practice and the need for regulatory reforms to protect vulnerable minors.