Chamber approves changes to the Bankruptcy Law and gives more power to creditors

The Chamber of Deputies approved this Tuesday (26) the proposal that amends the Bankruptcy Law. The project was sent to Congress by the federal government, but was approved in the form of a substitute for the rapporteur, deputy Dani Cunha (União-RJ). The text, which increases the power of creditors, will be sent to the Senate.

The rapporteur met with party leaders and the Minister of Finance, Fernando Haddad, at the official residence of the Presidency of the Chamber, and made changes to the opinion, informed the Chamber Agency. According to the project, it will be up to the general meeting of creditors to choose the fiduciary manager, who will prepare a bankruptcy plan and carry out the sale of assets. The bankruptcy court administrator will only act if the meeting of creditors does not elect a manager.

Among the measures, the proposal also establishes that the amounts of credits of a labor nature, determined by the Courts, will have their payment request processed only in the bankruptcy court. As a result, any act of collection by the labor court is prohibited.

Furthermore, the proposal limited the work of judicial administrators and fiduciary managers to two three-year terms, with a ceiling on their remuneration. To speed up the bankruptcy process, the proposal waives court approval for the sale of assets and payment of liabilities after the plan has been approved by the general meeting of creditors and ratified.

In judicial recovery, the text changes the minimum interval between two successive judicial recoveries requested by the same company from five to two years. The deadline may be waived if all creditors subject to the previous procedure have their credits fully settled.

The text prohibits the inclusion in a new judicial recovery of credits arising from a previous judicial recovery of the same debtor. Contracts and obligations arising from cooperative acts will be excluded from judicial recovery.

The government leader, deputy José Guimarães (PT-CE), stated that the project improves the Executive’s tax and fiscal management system. “We are providing the country with conditions to sustain the growth of the Brazilian economy with efficient management and the government’s republican commitment,” said Guimarães.

The minority leader, deputy Bia Kicis (PL-DF), stated that “the project has the potential to shorten bankruptcies”. According to her, the text proposes something better than current bankruptcy processes, some of which last for decades.