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Debt Collection in Brazil

Debt Collection in Brazil

Brazil greets domestic and foreign investors who want to benefit from the business occasions found in all industries. If the company incorporation is an easy process, when it comes to money recovery, legal support is suggested. Debt collection can be supervised from a legal point of view by our team of lawyers in Brazil who have a wide experience in this domain. Also, you can solicit us for business registration in any city in Brazil, as we can handle the legal aspects involved.

What is debt collection?

Debt collection is the recovery money process from debtors who did not respect the payment terms as agreed by a contract in this sense. A debt collection agency in Brazil is in charge of recovering the money or the assets involved and can commence the amicable procedure as the first step in this matter. Debt collection in Brazil can be performed by our team of Brazilian attorneys, with respect to the applicable legislation and the stages involved in such procedure.

Debt collection process in Brazil

The debt collection in Brazil depends upon the nature of documents. If the attested document is an invoice or a judicially recognized debt, then it is possible to file a claim requesting the debtor to pay within fifteen days. If the debtor does not pay within the given time, then the court will take action by blocking his/her bank account. To proceed with legal proceedings for debt recovery in Brazil, you will need to provide proof of delivery of goods and services, a signed contract, pertinent invoices, emails and receipts. If these documents are in a foreign language then they must be translated into Portuguese by a licensed translator.

On the other hand, if the document is not an invoice and a non-legal document, then the applicant first needs to file a claim so that the court could recognize the validity of the debt and the document. After the satisfactory inquiry, the court will proceed with debt collection. The average length of time for debt recovery in Brazil for judicially recognized documents is one year. While the debt collection for non-legal documents may take four years.

Our Brazilian lawyers effectively handle debt collection cases. You can get their services if you want your task done in short time and in an appropriate manner. If you are a foreigner involved in debt collection and you need advice on this, as well as on the steps to immigrate to Brazilour lawyers can represent you. 

The amicable procedure of debt collection in Brazil

Companies or natural persons unable to recover outstanding amounts of money, among which recovering a particular sum of money from debtors should address to a specialized team of lawyers in Brazil for complete legal support. They can recommend the amicable procedure for collecting the debts in Brazil which is subject to the following:

  • debtors will be informed about the payments they need to concern and respect;
  • a communication between the debt collection agency and the nonpayers will be established from this point;
  • a new payment date can be settled by both parts;
  • several documents can be added to the existing contract, with information about the debt payments in the new terms.

We can handle the amicable procedure od debt collection and we can help foreign investors recover their money in respect to the local laws.

What types of debts can be met in Brazil?

Rental payments, utilities, or credit banks are among the debts which can be met in Brazil. Our Brazilian lawyers will adopt a professional approach at the time of the debt collection process, in compliance with the customers’ demands in this direction. If the amicable procedure for money recovery offers no positive results, the next step is to present the case in the court of law. The needed expertise in your case can be provided by our team of lawyers in Brazil.

Legal services in Brazil for debt collection

The judicial system has been renewed recently and since 2015, the process of debt collection in Brazil has become very fast and effective. Our lawyers in Brazil are experienced in the matters of debt collection and you can trust their services for avoiding any delays. With the modernization of the judicial system of Brazil, the claims of people are now electronic; this seems like the best time for filing a claim of debt recovery in Brazil. The judicial costs are collected from the debtor at the end of the claim which. These costs tend to be 1% of the debt.

No one can provide legal services better than the local lawyers because they do not face any hindrance of language or people’s behaviors. Our Brazilian attorneys will assist you in all possible manners to collect your debt.

Secured and unsecured debts

A secured loan is backed by something collateral as a security to the lender. This thing is kept as a guarantee and the debtor will get it back in his/her possession after paying the debt to the lender. Secured debts have their pros and cons. Speaking about the pros of secured debts, the lender usually imposes a low interest rate because the presence of collateral reduces the risk of loss. In the case of secured loans, usually, lenders lend larger loans to the borrower with the lowest possible interest rate if the borrower has valuable collateral to offer. Such debts often come with larger repayment periods than their unsecured counterparts. But the disadvantage of borrowing a secured loan is that the borrower may lose his/her asset. It could be a house, automobile or other expensive things if the borrower fails to pay back the amount he/she has borrowed from the lender.

On the other hand, during granting an unsecured loan, the lender asks for a high-interest rate as security that the debtor has to pay on top of the real loan amount.

Revolving and non-revolving debts

A revolving debt is riskier than a non-revolving debt because it has more perspective to grow. This debt hardly gives any person a chance to come out of the debt zone. A credit card is an example of a revolving debt because it does not have a fixed price every month. The modifications are based on the actual balance of the loan. This means you have to pay more for this month if you have purchased with your credit card. On the other hand a non-revolving debt is a kind of debt that has fixed payments each month no matter how high the interest rate index goes.

Our attorneys in Brazil can help you recover a debt either through the amicable method or through the judicial one. Besides this, you should know that marriage to a Brazilian does not immediately provide the foreigner Brazilian citizenship; it only allows him/her to seek this citizenship. After one year in Brazil, a foreigner married to a Brazilian can apply for citizenship. The one-year limit also applies to foreigners with Brazilian parents or who have rendered important services to the nation. Get in touch with our lawyers to learn more about the time limits for different people regarding citizenship applications.

National debt of Brazil in relation to GDP (2016-2020)

The following table shows the statistical data of the national debt of Brazil in relation to GDP. These figures refer to the whole country including the debts of state, social insurance, communities and the municipalities:

YearNational debt of Brazil in relation to GDP

We invite you to contact our law firm in Brazil for complete information about the debt collection procedure in Brazil. In addition to this, if you are interested in acquiring a residency permit in Brazil, our lawyers can assist you. Brazil is renowned for its complex bureaucracy and hefty paper trail, so the procedure can be time-consuming. If the sort of visa requested is one of financial value, applications should be submitted to the Ministry of Labor. All other procedures are handled by the Brazilian Embassy. In matters relevant to the receipt of a permanent resident visa, a Brazilian specialist should be consulted. The services of our lawyers are at your disposal in this matter.