Credit Recovery | In a Pro-Creditor Decision, Brazilian Superior Court Authorizes Creditor to Attachment of Debtor Lower Wages

In a recent decision, the Brazilian Superior Court of Justice (STJ) understood that, frustrated other means to recover credit, it is possible to seize monthly income of less than 50 minimum wages, as long as it does not compromise the subsistence of the debtor and his family.

In the decision, the STJ allowed the seizure of 30% of the debtor’s monthly salary, which was approximately of BRL 8,500. 

Until then, the Brazilian procedural law only allowed the attachment of wages above 50 monthly minimum wages. This legal floor, which today amounts to approximately BRL 66,000 per month, made it practically impossible to garnish wages (in an execution not related to the payment of alimony), making credit recovery in Brazil difficult.

This decision paves the way for a new favorable possibility for creditors seeking to satisfy their credit – allowing for a greater return, mainly in the recovery of low credits, albeit on a large scale. However, the possibility of attachment of wages will depend on the circumstances of the specific case, such as the amount of the salary, the debtor’s financial context and whether there was a previous attempt to seize other assets or rights.


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