Best Restructuring & Insolvency Lawyers in Curitiba

Share your needs with us, get contacted by law firms.

Free. Takes 2 min.

Figueiredo Sens Advogados

Figueiredo Sens Advogados

30 minutes Free Consultation
Curitiba, Brazil

Founded in 2021
13 people in their team
Portuguese
English
Spanish
Italian
Figueiredo Sens Advogados – Business Law & Innovation-Driven Legal Services in BrazilFigueiredo Sens Advogados is a forward-thinking Brazilian law firm delivering high-impact legal solutions for entrepreneurs, corporations, and families across Brazil and abroad. With offices in Curitiba (PR)...
View profile
AS SEEN ON

About Restructuring & Insolvency Law in Curitiba, Brazil

Restructuring and insolvency law in Curitiba, Brazil is designed to provide solutions for businesses and individuals facing financial difficulties. The main objective of these legal frameworks is to allow financially troubled companies or debtors to reorganize their affairs, recover from debt or, when necessary, navigate an orderly exit from the marketplace. Following the national Brazilian Bankruptcy Law (Law No. 11.101/2005), Curitiba courts implement rules and procedures overseeing judicial recovery (recuperação judicial), extrajudicial recovery (recuperação extrajudicial), and bankruptcy (falência). The local judiciary in Curitiba, as the capital city of Paraná, has specialized courts and professionals experienced in handling these complex cases.

Why You May Need a Lawyer

Restructuring and insolvency cases are often complicated and require navigating various legal requirements, deadlines, and negotiations. Here are common situations where legal assistance may be needed:

  • Your company is struggling with an unsustainable level of debt and needs to restructure its obligations.
  • You or your business are facing lawsuits or collection efforts from creditors.
  • You are a creditor seeking to recover debts from a business that may be insolvent.
  • A court has notified you of bankruptcy or judicial recovery proceedings affecting your interests.
  • You wish to negotiate new payment plans with creditors but need a legally binding agreement.
  • Investigations regarding asset management, fraud, or potential liabilities are initiated.
  • You require guidance on your rights and obligations during insolvency or restructuring processes.

Having a lawyer ensures proper compliance with procedures, improves negotiation outcomes, protects your assets, and minimizes legal risks.

Local Laws Overview

The core legislation governing restructuring and insolvency in Curitiba is Law No. 11.101/2005, which applies throughout Brazil. This law outlines three main mechanisms:

  • Judicial Recovery (Recuperação Judicial): Allows companies in financial distress to reorganize their finances under court supervision, continuing operations while negotiating payment conditions with creditors.
  • Extrajudicial Recovery (Recuperação Extrajudicial): Enables out-of-court agreements on debt restructuring, provided legal requirements and creditor approval thresholds are met.
  • Bankruptcy (Falência): Initiated when recovery is deemed unfeasible, leading to liquidation of debtor’s assets to pay creditors according to the legal order of preference.

Curitiba’s local courts have specialized bankruptcy and business courts (varas empresariais) to handle cases under this legislation. Legal processes require strict observance of deadlines, require appointment of trustees (administradores judiciais), and frequent creditor meetings.

Individual insolvency solutions are more limited under Brazilian law, with bankruptcy generally aiming at corporate entities.

Frequently Asked Questions

What is the difference between judicial recovery and bankruptcy in Brazil?

Judicial recovery is a legal process where a financially distressed company seeks court approval to restructure its debts and continue its business. Bankruptcy, on the other hand, involves the liquidation of company assets when recovery is not viable, with proceeds used to pay creditors.

Can any company apply for judicial recovery?

Not all companies are eligible. Small businesses, cooperatives, and financial institutions are subject to special rules or are excluded. The company must be in business for at least two years and cannot have requested recovery or been declared bankrupt in the last five years.

What is the role of the trustee (administrador judicial) in these processes?

The trustee is a court-appointed professional who oversees the proceedings, ensures legal compliance, manages creditor meetings, and prepares reports on the company's situation and the process’s progress.

How are creditor claims treated in insolvency?

Claims are classified into categories such as labor, secured, tax, and unsecured creditors. Payments are made in a predetermined order of priority set by law, typically with labor and tax claims receiving preferential treatment.

What happens to company management during judicial recovery?

Usually, management continues to run the company under court supervision, unless fraud or serious mismanagement is found, in which case the court may order a change.

Can creditors object to the recovery plan?

Yes. Creditors vote on the proposed recovery plan during meetings. If the plan is rejected, bankruptcy proceedings may follow. Creditors may also submit objections requiring negotiation and modification of the plan.

Is personal bankruptcy available in Brazil?

Brazilian law generally applies corporate bankruptcy procedures, not personal bankruptcy for private individuals, except for business enterprises run as sole proprietorships or similar arrangements.

How does the extrajudicial recovery process work?

Extrajudicial recovery is an out-of-court agreement between a debtor and a group of creditors, later submitted to the court for homologation (approval) once support thresholds are met. It offers a faster and less formal process than judicial recovery.

Are restructuring and insolvency procedures public?

Yes, proceedings are registered and accessible in public records. Creditors and affected parties are notified of developments, hearings, and important decisions.

What are typical costs involved in these legal processes?

Costs may include court fees, trustee (administrator) remuneration, legal counsel fees, and administrative costs. These vary depending on the complexity and size of the case.

Additional Resources

If you need more information or assistance regarding restructuring and insolvency in Curitiba, consider the following resources:

  • Curitiba State Court of Justice (Tribunal de Justiça do Paraná) - Responsible for handling and providing information about local insolvency cases.
  • Brazilian Bar Association - Paraná Section (OAB/PR) - Provides referrals to experienced insolvency lawyers and publishes guidelines on business law matters.
  • Serasa Experian and SPC Brasil - Useful for credit and debt records, business solvency checks.
  • Sindicatos Empresariais e Comerciais - Trade and commercial associations often offer guidance and support for struggling businesses.

Governmental websites and business chambers may also offer guides or assistance for companies contemplating restructuring or seeking to understand their options.

Next Steps

If you are facing financial distress, involved in a case as a creditor or debtor, or need guidance on restructuring or insolvency law in Curitiba, it is critical to act promptly. Contact a qualified legal professional specialized in corporate law or insolvency. Prepare a clear summary of your financial situation, contracts, creditors, and any previous negotiations. Schedule a consultation with a lawyer, who can analyze your circumstances, explain your rights and obligations, and begin preparing the necessary documentation for your chosen legal procedures.

Remember, early intervention can provide more restructuring options and may prevent more severe outcomes such as liquidation or loss of personal assets. Consulting an expert helps you navigate the complexity of the Brazilian legal system and secures the best possible outcome for your case.

Lawzana helps you find the best lawyers and law firms in Curitiba through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Curitiba, Brazil - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.