2023 was the year with the 4th highest rate of requests for judicial recoveries in the history of Serasa Experian (which began in 2005) and the highest figure since the beginning of the pandemic. Bankruptcy filings also rose in the period.
As both processes take a long time to be resolved in Brazil, the Ministry of Finance sent Bill 03/2024 to Congress to speed up the outcome, reduce costs and provide greater transparency.
According to Leonardo Ribeiro Dias, head of our Litigation, Arbitration and Insolvency department, a bankruptcy or reorganization process can take a decade or more. Therefore, in the text sent to Congress, there are no changes to the provisions amended by Parliament in 2020, but to the process itself.
The idea is to partly reform the bankruptcy process so that it becomes faster and, as a result, the debtor’s valid assets can be sold more quickly and creditors paid as soon as possible.
In an interview with InvestNews, Leonardo commented on the details of the bill.
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