Corporate debt restructuring in São Paulo, Brazil
Before anyone mentions judicial reorganisation there is almost always a cheaper route — and the difference between the two is when you ask for help. We map the liabilities before suggesting anything.
5,0 · 18 Google reviewsJudicial reorganisation is the last door, not the first. Before it come direct renegotiation, defence in enforcement proceedings, protection of essential assets and out-of-court reorganisation, which today requires creditors representing more than half of the claims in each class covered — a quorum lowered by Law 14,112/2020. Choosing the right door depends on a map most companies have never drawn.
Where we can act.
- Bank and supplier debtStructured renegotiation, extended terms and settlements backed by security, before it becomes enforcement.
- Enforcement already filedDefence, challenges, disputes over abusive charges and substitution of attachments that paralyse the business.
- Attachment and frozen accountsUrgent action against seizures that lock the cash and stop the company trading.
- Partners pursued personallyDefence in the veil-piercing incident and a clear line between company debt and partner debt.
- Out-of-court reorganisationA plan negotiated outside the courts and taken for approval, with the quorum the statute requires.
- Judicial reorganisationWhere it is the route, we handle the petition, the plan and the relationship with creditors and the administrator.
- Simplified regime for small businessThe special plan under Law 11,101/2005 for micro and small companies, with no creditors’ meeting.
Three things the statute has already settled.
The first is breathing room. Once reorganisation is admitted, enforcement actions are stayed for 180 days, extendable once for an equal period, exceptionally and provided the company did not cause the delay (art. 6, §4). That is time bought to negotiate — and the clock starts on admission, not when the plan is ready.
The second is who is not in the pot. Art. 49, §3 excludes from reorganisation claims secured by fiduciary lien, finance leases, irrevocable promises to sell real estate and retention of title. But there is a meaningful protection: during the stay, those creditors cannot remove from the premises capital goods essential to the business. Knowing which debts fall outside changes the viability calculation entirely.
The third is who may apply. Art. 48 requires regular activity for more than two years plus four further conditions, among them not having obtained judicial reorganisation in the past five years. A company that fails the requirements needs another strategy — and finding that out through a rejected petition is the worst possible outcome.
How we run the case.
- Mapping the liabilitiesEvery debt with amount, creditor, security, stage and deadline. Without that map, any decision is a guess.
- Separating what is negotiableClaims inside and outside the process, essential assets, secured creditors. That defines the room to manoeuvre.
- Direct negotiation firstMany cases resolve with extended terms and discounts, without proceedings and without public exposure.
- Defence in what is already in courtChallenges, review of charges, substitution of attachments and protection of essential revenue.
- Out of court or in courtIf direct settlement does not close, we choose between out-of-court approval and a judicial petition.
What to bring to the first conversation.
Documents that speed up the review
To tell you whether a route outside judicial reorganisation remains, we need to see the size and the shape of the liabilities. Bring whatever exists.
- Schedule of debts by creditor and amount
- Bank and financing agreements
- Financial statements for the last three years
- Bank statements and recent cash flow
- Service of process in pending enforcement
- Protest certificates and credit bureau listings
- Articles of association and latest amendment
- Schedule of company assets and security given
First diagnosis at no cost, with no obligation. Informational content under Brazilian Bar Association Rule 205/2021 — it does not replace an assessment of your case.
What clients say on Google.
“From the very start I was looked after exceptionally. The team is attentive and explains every step.”
Amanda M. · Google“Excellent, highly qualified professionals. I highlight the professionalism, the service and the honesty.”
Rita G. · Google“Very polite, patient, always with precise, accurate answers. I recommend them with no reservations!”
Thais T. · GoogleReal client reviews published on Google.
Who leads this area.
Partner in charge of the corporate practice (OAB/SP 344.334). Postgraduate in Business Law (FGV), acting in debt restructuring, contracts, corporate matters and credit recovery. Member of AASP and of the AIPLA. Fluent in English.
Meet Renato FalchetCommon questions.
Our company is in debt. What comes first?
Mapping the liabilities before any decision: every debt with amount, creditor, security and procedural stage. That is what shows whether the problem is cash, capital structure or operations — and each diagnosis leads somewhere different. Companies that negotiate without the map tend to settle badly with the loudest creditor rather than the most important one.
Is judicial reorganisation always the answer?
No, and in most cases that reach us it is not. It carries cost, public exposure and strict requirements: regular activity for more than two years and no judicial reorganisation obtained in the past five (art. 48, Law 11,101/2005). Before it come direct renegotiation, defence in enforcement and out-of-court reorganisation.
What is out-of-court reorganisation and when does it pay?
It is a plan negotiated outside the courts and taken to a judge only for approval, which cuts cost and exposure. It requires creditors representing more than half of the claims in each class covered — Law 14,112/2020 lowered that quorum from three fifths. Approval can be sought with one third of adherence, undertaking to reach the majority within 90 days.
Are the partners’ personal assets at risk?
As a rule legal personality separates the estates, and reaching a partner requires piercing the veil, with proof of abuse, misuse of purpose or commingling, in a dedicated incident with a right to be heard. But there are meaningful exceptions — personal guarantees you signed, endorsements, and certain labour and tax debts. It is a mandatory item in the diagnosis.
Can the bank take the machinery the company produces with?
Claims secured by fiduciary lien and finance leases are not subject to judicial reorganisation (art. 49, §3). But the same provision prevents those creditors, during the stay, from removing from the premises capital goods essential to the business. Proving the asset is essential is a concrete argument, and it is worth having.
Is there a simpler regime for small companies?
Yes. Law 11,101/2005 provides a special plan for micro and small companies, with payment in up to 36 monthly instalments indexed to the Selic rate, the first falling due within 180 days of the petition, and no creditors’ meeting. It does not cover every claim, and the intention must be stated in the initial petition.
What does it cost, and do you act outside São Paulo?
The diagnosis is free of charge. From there, fees are agreed in writing: a fixed fee for renegotiation and discrete defence work, a monthly retainer for ongoing support, and a specific proposal for out-of-court or judicial reorganisation. We act for companies across Brazil, instructing local agents under our supervision where proceedings run elsewhere.
Is the debt still negotiable?
Send the schedule of what the company owes and to whom. We run the diagnosis at no cost and tell you which door is still open. We reply within one business day.