Where an agreed sentence for fraudulent bankruptcy does not exceed two years’ imprisonment, bankruptcy-related ancillary penalties cannot be imposed. If they are nevertheless imposed, their removal may also benefit a co-defendant who has not appealed.
The Fifth Criminal Section of the Italian Supreme Court reiterated this in judgment no. 35593, filed on 7 October 2026. In the case examined, the judge had imposed, in addition to the agreed sentence, disqualification from carrying on a commercial business and from holding management positions in any business.
The Court held these penalties unlawful: the prohibition in Article 445(1) of the Italian Code of Criminal Procedure also applies to the mandatory ancillary penalties under Article 322 of the Italian Crisis and Insolvency Code. Fraudulent bankruptcy does not fall within the exceptions in paragraph 1-ter.
The particularly significant point concerns the extension of the effects of an appeal. Because the successful ground was not exclusively personal, the Supreme Court also removed the ancillary penalties imposed on the non-appealing co-defendant, who had been sentenced in the same judgment and likewise received an agreed sentence of no more than two years.
The decision highlights a practical check: verify the legality of ancillary penalties imposed with an agreed sentence and, where several defendants are in the same position, assess whether the favourable effects of an appeal also extend to those who did not challenge the judgment.
Italian Supreme Court, Fifth Criminal Section, judgment no. 35593, decided on 25 September 2026, filed on 7 October 2026, pp. 2–4.
