Recovering overdue credits can be a challenging process for creditors in Brazil, but Brazilian law provides a range of tools to assist it, which includes typical and atypical enforcement measures stand out.
Typical enforcement measures are aimed directly at fulfilling the obligation, whether by transferring possession of an asset or through the judicial sale of the debtor’s property.
To implement these typical measures, creditors have access to the following main tools:
1. Sisbajud: Locates and freezes funds in bank accounts, including through the “persistent search” feature, which continuously tracks financial assets.
2. Renajud: Identifies vehicles registered under the debtor’s name.
3. Infojud: Provides access to tax information and income tax returns.
4. CNIR: A national registry that consolidates information on rural properties.
5. SNIPER: A patrimonial investigation system that cross-references data from various sources to locate assets.
6. CNIB: Allows for the registration of asset unavailability, preventing the debtor from selling or transferring properties.
Atypical enforcement measures, on the other hand, are not aimed directly at debt payment but rather at compelling the debtor to fulfill their obligation. Examples include the suspension of a driver’s license (CNH), passport seizure, and blocking credit cards.
The Superior Court of Justice (STJ) is currently analyzing the legality of atypical enforcement measures, such as passport seizure, under Topic 1,137. Although it ordered the suspension of cases involving such requests in 2022, the STJ began issuing favorable decisions for creditors in 2023, based on a Supreme Federal Court (STF) ruling that deemed the seizure of a debtor’s passport constitutional (ADI No. 5,941).
In addition to the measures mentioned above, it is also possible to initiate a piercing the corporate veil proceeding to reach the assets of shareholders, companies within the same economic group, or the company itself, if the debtor is an individual. To support the initiation of such a proceeding, a detailed investigation of the debtor’s civil life is recommended to identify any irregularities committed, using search tools like CENSEC to locate powers of attorney or donations with usufruct in notaries’ offices, which evidence fraud through the use of “straw men.”
Credit recovery, when conducted strategically and with personalization, can become a competitive advantage for companies. A well-defined strategy that considers each debtor’s profile and the specificities of each debt significantly increases the chances of success in negotiations and in recovering the amounts owed. Developing an effective strategy requires deep market knowledge, familiarity with the available tools, and an understanding of best practices in credit management.
