Asset recovery is not merely a frantic search for assets. On the contrary, for creditors to successfully collect the amounts owed to them, it is essential to adopt sound legal strategies and possess precise technical knowledge of the mechanisms available under Brazilian law. These factors can increase the chances of success and reduce operational costs.
Although Brazil is a major investment hub, default rates continue to rise and represent a significant obstacle to asset recovery. In July of this year, the country recorded 78.2 million indebted individuals, and renegotiation agreements surpassed R$ 11.1 billion.
This scenario adds complexity to recovery efforts and, consequently, demands increasingly specialized strategies to ensure that debts are actually converted into effective payments.
This high level of indebtedness, often combined with the persistent behavior of debtors who engage in asset concealment and dissipation, creates practical barriers to recovery. As a result, locating assets becomes increasingly difficult, and the costs of securing these assets rise.
At this point, the involvement of a law firm with a specialized credit recovery team becomes essential. This type of work requires everything from risk mapping and identification of alternatives to the management of complex proceedings with agility, culminating in the effective attachment of the debtor’s assets.
Among the strategies employed, thorough due diligence and in-depth asset investigations stand out, supported by tools capable of identifying various types of assets, such as financial investments, vehicles, real estate, agricultural products, and other types of inputs. This enables a comprehensive mapping of the debtor’s assets and, even before judicial measures are taken, allows for the implementation of precautionary measures that increase the chances of credit recovery.
Beyond extrajudicial actions, credit recovery also requires technical mastery of the nuances of the Brazilian judiciary. It is crucial, for example, to understand the legal order of asset attachment and to handle it strategically, as well as to develop various legal arguments to counter claims of exemption from attachment that could hinder enforcement.
This repertoire must be aligned with a strategy that optimizes asset attachment. Although the law establishes a logical hierarchy—prioritizing the attachment of financial assets, for example—in practice, this order requires proactive and effective action to avoid delays. Debtors often act in advance, emptying accounts or transferring liquid assets, which can slow down or undermine the process if swift and intelligent measures are not taken.
For example, to secure the attachment of real estate—since the law postpones the attachment of such assets—it is common to recommend registering the existence of the debt on the title of apartments, houses, and farms belonging to the debtor, which may have been identified through prior due diligence. This prevents or complicates the sale of these assets to third parties and ensures the effectiveness of the operation.
In addition to the challenges posed by the hierarchy of attachments, it is important to remember that Brazilian law itself provides a significant layer of protection for debtors, listing a series of assets considered exempt from attachment, such as salaries, properties used as residences, or essential assets for the debtor company’s operations. In practice, these cannot be used to settle debts, meaning that a significant portion of assets may remain out of the creditor’s reach, even in the face of substantial debts.
It is not uncommon for debtors to use these legal protections as a defensive strategy, raising claims of exemption from attachment to delay or even prevent the satisfaction of the debt.
Nevertheless, creditors have developed strong legal arguments to overcome these obstacles. For example, the Superior Court of Justice has ruled that salaries and pensions may be attached, provided that such measures do not compromise the subsistence of the debtor and their family.
So, despite debtors’ evasive tactics, with a well-crafted persuasive strategy, it is possible to demonstrate that protective rules are not absolute and may be subject to exceptions depending on the case, thus respecting the creditor’s interest in recovering their assets.
Ultimately, credit recovery in Brazil is achieved at the intersection of legal acumen and practical execution. It’s not enough to know the rules; you must know how to navigate the system — apply the law with precision, leverage smart shortcuts, and neutralize standard defenses. For foreign companies, partnering with a specialized law firm turns complexity into momentum and materially improves recovery outcomes.