In a pro-creditor decision, the Brazilian Superior Court (STJ) reinforced the understanding that it is possible to seize amounts deposited in a savings account, checking account or financial investments of companies up to 40 minimum wages.
As a rule, the Brazilian procedural rule establishes that the amount up to the limit of 40 minimum wages deposited in the debtor’s savings account cannot be subject to seizure, without distinguishing between debtor companies or individuals.
Case law of state courts expanded the legal immunity to amounts deposited in accounts and financial investments (and not only to savings account), further restricting the options for creditors in the enforcement proceedings.
However, in recent rulings, the STJ reinforced the position that such unseizability of savings only applies to individuals and cannot benefit companies.
This understanding is yet another indication that the STJ is attentive to the economic demand for better conditions for credit recovery in Brazil, and can be applied by creditors who have large portfolios or that bet on large scale judicial recovery.