Practice areas
Debt collection and credit recovery
Your company delivered, invoiced and was never paid. Recovering that credit in Brazil is a matter of choosing the right instrument and not missing a deadline.
Debt recovery in Brazil follows different routes depending on the document that evidences the debt. Instruments such as a trade bill (duplicata), a cheque or a promissory note allow direct enforcement, under article 784 of the Code of Civil Procedure. Documents without enforceable status can support a monitory action under article 700. Each route has its own limitation period, and the wrong choice costs time.
What the practice does in this area
- Collection of trade bills (duplicatas), cheques, promissory notes and contracts
- Enforcement of extrajudicial instruments and enforcement of judgments
- Monitory actions for documents without enforceable status
- Notarial protest of instruments and negotiation before filing suit
- High-volume litigation and portfolios with large numbers of contracts
- Renegotiation of debts with suppliers, employees and other creditors
- Defence of debtors, when the claim is wrongful or time-barred
The document defines the route
An accepted trade bill, a cheque, a promissory note and a contract signed by two witnesses are extrajudicial enforceable instruments, listed in article 784 of the Code of Civil Procedure (Código de Processo Civil). They allow the creditor to go straight to enforcement. An email exchange, a confirmed order or a standalone invoice do not. In those cases the monitory action of article 700 is usually the right route.
Limitation periods are not all the same
The period to enforce a cheque is short and runs from the end of its presentation window. Claims for liquidated debts recorded in a public or private instrument become time-barred in five years, under article 206 of the Civil Code. Letting the document age can mean trading enforcement for a monitory action, or losing the claim.
Protest is a tool, not a threat
The notarial protest of an instrument, governed by Law 9,492/1997, is a formal public record of non-payment. Its practical effect is significant · it publicises the default and frequently brings the debtor to the table. But protesting a time-barred, already paid or baseless instrument exposes the creditor to liability. Using the tool correctly is part of the strategy.
A large portfolio needs portfolio treatment
When a company has hundreds of defaulted contracts, treating each one as an isolated case is inefficient. High-volume collection work organises the portfolio by amount, age of the debt and type of instrument, and assigns each bracket a route, out of court or judicial.
Frequently asked questions
What is the difference between enforcement and a monitory action in Brazil?
Enforcement starts from an instrument that already has enforceable status, listed in article 784 of the Code of Civil Procedure, and moves directly to measures against the debtor’s assets. The monitory action of article 700 serves written evidence without that status · the judge orders payment, and if the debtor does not object, the order becomes an enforceable instrument.
Can an old cheque still be collected in Brazil?
It depends on how much time has passed. Once the enforcement period expires, the cheque loses enforceable status but can still serve as written evidence in a monitory action, and after that as a document in an ordinary collection claim, within the Civil Code deadlines. Each stage narrows the options, so checking the dates is the first step.
Is it worth protesting an instrument before suing?
Frequently yes, when the instrument is legitimate, due and unpaid. The notarial protest is fast, costs less than a lawsuit and often triggers a negotiation. What a creditor must not do is protest a time-barred, already settled or baseless instrument, because that reverses the positions and exposes the creditor to a claim.
I am being chased for an old debt. Is it still valid?
Debts become time-barred, and the limitation period varies with the nature of the credit and the document that records it. In addition, listing in credit protection registers has its own maximum period under the Consumer Protection Code. A time-barred debt cannot be claimed in court or justify blacklisting, although it survives as a natural obligation.
Can a company collect debts without a lawyer?
Out-of-court collection, by letter, phone or direct negotiation, does not require a lawyer, as long as it respects the limits of the Consumer Protection Code, which forbids ridicule, threats and harassment. Notarial protest and any court measure, in practice, require professional handling.
Informational content only, with no offer of services for any specific case, in line with Rule 205/2021 (Provimento 205/2021) of the Brazilian Bar Association (OAB).