Credit Recovery | The Brazilian Superior Court Rules That Creditor Has the Right to Enforce Uncontested Debt

In a recent decision, the Brazilian Superior Court (STJ) established the understanding that, in cases of partial impugnation to the value of the debt, the creditor has the right to receive the undisputed (uncontested) part of the debt, with no reason to postpone immediate execution.

In that regard, even if the impugnation is upheld, there will be no change in relation to the amount not contested by the debtor. Thus, it was highlighted by the STJ that, as a rule, the impugnation in an execution lawsuit does not have a suspensive effect, allowing the practice of executive acts on the debtors’ assets, including expropriation (attachment, arrest, search and seizure, among others).

In the case under analysis, the creditor company, in an enforcement lawsuit, demanded the receipt of a debt of BRL 619 thousand. The debtor disputed the amount of the charge, however, he acknowledged that, in fact, he owed BRL153,900 to the creditor. In this sense, the company argued that it would have the right to enforce the undisputed amount of the debt, requesting the seizure of the value.

Therefore, in the case of a partial impugnation, the creditor is guaranteed the right to continue with enforcement actions on the undisputed amount of the debt. That being so, such decision imposes a favorable understanding for creditors seeking to satisfy their credit, enabling the immediate execution of part of the debt.

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