Best Restructuring & Insolvency Lawyers in Navegantes

1. About Restructuring & Insolvency Law in Navegantes, Brazil

Restructuring and insolvency law in Brazil focuses on two main tools for companies facing financial distress: judicial recovery and bankruptcy. Judicial recovery helps a potentially viable business to renegotiate debts and continue operating under a court-ordered plan. Bankruptcy, or falência, typically applies when a company can no longer continue, and assets are liquidated to satisfy creditors. In Navegantes, as in other municipalities in Santa Catarina, these processes follow federal law but are handled by state courts in the comarca where the debtor is domiciled.

Key terms you may encounter include plano de recuperação (recovery plan), habilitação de créditos (creditor claims filing), and sociedade empresária (business entity). A successful judicial recovery depends on a credible plan, timely disclosure to creditors, and compliance with deadlines set by the court. If the business shows long-term viability with adjustments, recovery can preserve jobs and value for creditors.

In practice, local attorneys coordinate with the court system and creditors to assemble a plan that restructures debts, extends payment terms, reduces certain liabilities, and reorganizes governance. Debtors, creditors, and a court-appointed administrator typically participate in meetings to approve the plan or negotiate amendments. The process emphasizes transparency, realistic projections, and compliance with applicable rules to maximize chances of sustainable operations.

Lei de Recuperação de Empresas e Falência governs the framework for judicial recovery and bankruptcy in Brazil, including plan approval and creditor rights. Source: Planalto Planalto.gov.br - Lei 11.101/2005. https://www.planalto.gov.br/ccivil_03/leis/L11101.htm

Brazilian insolvency law has evolved to address modern corporate challenges. The 2020 reforms introduced updates to streamline procedures, clarify creditor interactions, and improve digital workflows. These changes impact how cases are filed, how plans are presented, and how creditors participate in decisions. In Navegantes, practitioners observe a rising use of digital filings and remote hearings in appropriate cases.

Recent updates modernize procedures for judicial recovery and bankruptcy, including digital filings and streamlined creditor engagement. Source: Planalto Planalto.gov.br - Lei 14.112/2020. https://www.planalto.gov.br/ccivil_03/leis/L14112.htm

2. Why You May Need a Lawyer

Situations specific to Navegantes often require skilled legal guidance to navigate the restructuring and insolvency landscape. Below are concrete scenarios where legal counsel is essential.

• A local manufacturer in Navegantes faces a cash flow squeeze after a major customer delays payment, risking default on supplier terms and payroll obligations. A lawyer can assess eligibility for judicial recovery and help prepare a credible recovery plan that preserves operations.
• A family-run port services company owes banks and suppliers after a downturn in shipping activity. An attorney can organize creditor classes, negotiate a restructuring, and prepare the plan to minimize liquidation risk.
• A tourism and hospitality business in the Navegantes area experiences revenue volatility due to seasonality and weather-related disruptions. Legal counsel can explore judicial recovery or extrajudicial arrangements to restructure debt without immediate liquidation.
• A supplier contends with multiple overlapping claims against a debtor operating in Itajaí Valley logistics. A restructuring attorney can oversee the claims process, classify creditors, and coordinate with the court on a recovery plan that treats all classes fairly.
• A lender seeks to recover debt from a distressed company using collateral and guarantees. A lawyer can verify the validity of credits, exercise timely notification, and participate in creditor meetings to protect the lender’s rights within the recovery framework.
• A small business in Navegantes contemplates a pre pack or extrajudicial recovery arrangement with creditors. A solicitor can guide the process, ensure statutory compliance, and document the terms with proper court oversight if required.

3. Local Laws Overview

Restructuring and insolvency in Navegantes are governed by national statutes and procedural rules that apply across Brazil. Here are the core laws and a note on how they interact with local practice.

• Lei No. 11.101/2005 - Lei de Recuperação de Empresas e Falência. This statute creates the framework for judicial recovery and bankruptcy, including eligibility, plan requirements, creditor classes, and court procedures. It remains the foundational law for corporate insolvency in Brazil.
• Lei No. 14.112/2020 - Updates to the recovery and bankruptcy regime. This law modernized several provisions, enhanced digital processes, clarified creditor participation, and streamlined certain procedural steps to reflect contemporary business needs.
• Código de Processo Civil (Lei No. 13.105/2015) - Governs procedural rules that apply to insolvency proceedings where applicable. While the LRF provides the substantive framework, the CPC guides court procedures, evidence, and appeals in many cases.

In Santa Catarina, insolvency matters are heard by the state judiciary, typically in a dedicated Vara de Falências e Concordatas within the comarca that houses the debtor. The city of Navegantes relies on regional coordination with the Tribunal de Justiça de Santa Catarina (TJSC) and the court’s local offices to handle filings, hearings, and creditor meetings. Practitioners emphasize the need to align state court practices with federal statutory requirements for restructuring and bankruptcy.

Consolidated federal law on insolvency governs the process nationwide in Brazil, including Santa Catarina. Source: CNJ and Planalto references. CNJ - National Justice Council

4. Frequently Asked Questions

What is judicial recovery in Brazil?

Judicial recovery is a court-supervised process to restructure debts while keeping the business operating. A recovery plan must be approved by creditors and the court.

How do I start a recovery process in Navegantes?

Hire a local solicitor specialized in restructuring, gather financial documents, and file a petition with the appropriate Vara de Falências e Concordatas. The attorney helps prepare the plan and notify creditors.

What is a plano de recuperação?

A plano de recuperação is a formal plan outlining how debts will be restructured, including payment terms, debt haircuts, and governance changes. It requires creditor approval and court confirmation.

Do I need a lawyer to pursue judicial recovery?

Yes. A lawyer with insolvency expertise helps assess viability, prepare the plan, coordinate with creditors, and navigate court requirements and deadlines.

How much does a restructuring lawyer typically cost in Navegantes?

Fees vary by case complexity and firm. Expect a combination of retainer, hourly charges, and potential success-based components tied to the plan approval.

How long does the recovery process usually take?

Durations vary by case. Recovery often spans several months to over a year, depending on plan complexity, creditor cooperation, and court pace.

What is a credit class in a recovery?

Credit classes group creditors by status and priority, such as secured, unsecured, and labor credits. The recovery plan treats each class according to legal rules.

What is concurso de credores?

Concurso de credores is a creditors meeting where claims are verified, classes are defined, and the recovery plan is reviewed or revised before approval.

Can a small business use extrajudicial recovery?

Yes, in some cases. Extrajudicial or consensual restructurings allow negotiations outside court, but they must meet statutory requirements and may still involve court oversight.

What distinguishes recovery from bankruptcy?

Recovery aims to save the business and reorganize debts; bankruptcy leads to liquidation of assets and settlement of debts under a court process with liquidation priorities.

Is it possible to involve creditors early in the process?

Yes. Early communication with creditors improves the chance of reaching a workable plan and helps ensure timely validation of the plan by the court.

Do I need to prove insolvency to file for recovery?

Not always. You must demonstrate financial distress and a viable path to recovery. The court assesses whether the business has potential to survive with a restructuring plan.

5. Additional Resources

Use these official sources to understand the legal framework and access authoritative texts related to restructuring and insolvency.

• Planalto Portal - Lei No. 11.101/2005 (Lei de Recuperação de Empresas e Falência). This is the official text of the foundational insolvency law. https://www.planalto.gov.br/ccivil_03/leis/L11101.htm
• Planalto Portal - Lei No. 14.112/2020 (Atualizações à Lei de Recuperação). This source covers recent modernization of the regime. https://www.planalto.gov.br/ccivil_03/leis/L14112.htm
• Tribunal de Justiça de Santa Catarina (TJSC) - Insolvencia e falencias: informações sobre procedimentos locais. https://www.tjsc.jus.br

6. Next Steps

1. Identify your insolvency objective: recovery, restructuring, or orderly liquidation. Define business viability and desired outcomes.
2. Consult a local lawyer in Navegantes who specializes in restructuring and insolvency. Schedule a 60-minute initial meeting to discuss the case scope.
3. Gather core documents in advance: financial statements, tax records, debt schedules, creditor notices, contracts, and employee payroll data.
4. Request a preliminary assessment from the attorney within 1-2 weeks after your meeting. Ask for a candid viability analysis and options.
5. Decide on the path: judicial recovery, extrajudicial restructuring, or liquidation. Your lawyer should explain risks, timelines, and costs.
6. Prepare a basic recovery or restructuring plan if applicable. The plan should include cash flow projections, debt treatment, and governance changes.
7. File the petition with the appropriate Vara de Falências e Concordatas. Ensure all creditor notices and requirements are met to avoid delays.