4 National Report for Brazil »
Rachel Sztajn, Paulo Fernando Campos Salles de Toledo, Fernando César Nimer Moreira da SilvaFrom: Ranking and Priority of Creditors
Edited By: Dennis Faber, Niels Vermunt, Jason Kilborn, Tomáš Richter, Ignacio Tirado
This chapter discusses the law on creditor claims in Brazil. The legal treatment of creditor claims is similar to that in other worldwide systems. The new Brazilian Insolvency Law (Federal Law No 11.101/2005) and the former Decree-Law empower the insolvency judge to appoint a judicial administrator and define the time period in which existing debts will be recognized and included in the legal procedure. Because the firm’s assets represent the guarantee of payment of debts, the creditors’ and debtor’s legal positions are connected in a sort of unitary bundle. Of note in the new Law is the reduction of priority of tax and wages claims, leaving more value available for distribution to other creditors. The chapter then examines insolvency claims, administration claims, and non-enforceable claims in turn. Each section covers: the definition and scope of the claim; rules for submission, verification, and satisfaction or admission of claims; ranking of claims; and voting and other participation rights in insolvency proceedings.