Finance; Litigation | How to Increase Credit Recovery Effectiveness in Brazil

Credit recovery technics advanced in Brazil in the last years.

Although they still rely on the “old” judicial lawsuit, the use of modern strategies may increase in up to 100% the changes of success for foreign and Brazilian creditors.

One of them is to apply big data to find debtor’s assets with economic value sufficient to pay off the outstanding debt (or part of it). The traditional search into public registries (which, although essential, takes sensitive time) must be coupled with big data-based asset search, which are becoming available and are nimble and effective. Such approach brings assertiveness and economy to the process.

Another strategy is in the form of how to present and conduct the claim. We noted an increase of above 50% in credit recoveries when the main judicial procedure (execution or ordinary lawsuit) is enhanced with other preliminary and/or parallel proceedings, which we call “legal guerilla technique”. They embody from the known notifications and judicial-imposed registry annotations, to other judicial and extrajudicial legal intelligence actions that, as a whole, undermine gradually debtors’ defenses.

The use of such innovative techniques is showing a sharp improvement in the rate of success of credit recoveries in Brazil.


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