Guides

Judicial recovery in Brazil

Brazil's Law 11.101 of 2005 provides judicial recovery (recuperação judicial), a court-supervised reorganisation requested by the debtor, alongside extrajudicial recovery and bankruptcy (falência).

• Law 11.101/2005 covers court-ordered and out-of-court recovery and bankruptcy. It does not apply to financial institutions, credit cooperatives and certain other entities, or to state-run companies.¹
• Judicial recovery is requested by the debtor and aims to overcome a business crisis so the company can keep operating, keep workers employed and protect creditors' interests. It requires a judge's approval.¹
• Bankruptcy (falência) is a court-ordered liquidation of an insolvent business aimed at selling its assets to pay creditors. Extrajudicial recovery is a private negotiation that must also be approved by the courts.¹
• A typical sequence is visible in the Americanas case: filing and grant of judicial recovery on 19 January 2023, plan filed on 20 March 2023, plan approved by creditors in December 2023, court homologation on 26 February 2024 and closure of the proceeding on 19 October 2026, according to the company.²

Sources

1. Wikipedia, Bankruptcy in Brazil (27 October 2026)
2. Americanas S.A. investor relations, Recuperação Judicial: Timeline (27 October 2026)