Debt Collection Attorney in Brazil
Debt Collection for Foreign Creditors
When a Brazilian customer or business has not paid for goods or services, our attorneys can assess the documents and the available routes to recovery. We assist foreign creditors with unpaid invoices, contractual debts and other documented payment obligations in Brazil.
Our debt-collection service handles debts of R$100,000 or more (roughly US$20,000; the dollar equivalent varies with exchange rates). Before recommending action, we consider the evidence, applicable deadlines, debtor location and practical prospects of recovery. A valid claim does not guarantee that assets will be available to satisfy it.
You can request a professional-fee estimate by outlining the debt and the assistance you need. For substantive questions about your rights or recovery strategy, book an expert consultation. If you already hold a foreign court judgment, see our foreign judgment recognition and enforcement service.
How can we help with your debt recovery?
Have legal questions?
Discuss your unpaid debt, recovery options and next steps in an expert consultation with Luciano Oliveira.
Consultation fee credited in full toward our professional fees when you hire us.
A professional-fee estimate?
Tell us the debt amount, debtor location and documents you hold in Brazil to request a professional-fee estimate.
For substantive legal questions, please choose a consultation.
Overview of Debt Collection in Brazil
Debt collection in Brazil refers to the process of recovering outstanding debt from individuals or companies that have failed to pay what they owe. This process involves various steps, from pre-litigation efforts, such as contacting the debtor directly or through a debt collection agency, to legal action, such as filing a lawsuit and seeking enforcement of a court judgment.
The Brazilian legal system provides specific regulations and procedures for debt collection, and it is important for foreign companies to have a good understanding of these in order to be successful in collecting debt in Brazil.
Collection Related Pages
- Statute of Limitations for Debts in Brazil
- Official Protests Can Pressure Debtors in Brazil
- Brazil Consumer vs Commercial Debt Collection
- Protect The Company When Collecting Debt
- Debtor’s Location in Brazil Affect Court Procedures
- Sell Unpaid Debts to a Third Party in Brazil
Importance of Working with a Debt Collection Firm Experienced with Foreign Clients
Understanding the process for collecting debt in Brazil is crucial for foreign companies for several reasons:
- Compliance with local laws and regulations: Foreign companies need to ensure that they follow Brazilian laws and regulations in their debt collection efforts to avoid legal penalties and reputational damage.
- Navigating cultural and linguistic barriers: Brazil has a unique cultural and linguistic context, and foreign companies may face challenges in communicating effectively with debtors and navigating the legal system.
- Different business practices: Debt collection practices in Brazil may be different from those in other countries, and foreign companies need to be aware of these differences in order to be successful.
- Protecting company reputation: Debt collection efforts can impact a company’s reputation, and foreign companies need to be mindful of how they approach this process in order to maintain positive relationships with clients and customers.
By understanding the process of collecting debt in Brazil, foreign companies can increase their chances of success, reduce the risk of potential legal and reputational problems, and make informed decisions about recovery.
Our Debt Collection Workflow
Start with a professional-fee inquiry for scope and pricing, or a legal consultation for substantive advice. Collection work begins after we agree on the scope and terms of engagement. Consultation fee credited in full toward our professional fees when you hire us.
Document and Recovery Review
We assess the contract, invoices, proof of delivery or performance, payment history and relevant correspondence. The debt amount, deadlines, potential defenses and available asset information help determine whether a proposed step is proportionate to the likely recovery.
Negotiation and Payment Agreements
Where appropriate, we contact the debtor to discuss payment and document any agreed terms. A carefully prepared settlement can clarify the amount, schedule and consequences of nonpayment; its enforcement depends on the document and applicable legal requirements.
Demand Letters
A demand letter can set out the claim, request payment and explain potential next steps. The approach depends on the evidence and commercial context, with professional communications throughout.
Protesto
Where the debt documents qualify, a formal protesto may be an available step. It records nonpayment through a protest office under Law 9,492/1997. We assess suitability before recommending it; it does not guarantee payment.
Litigation and Enforcement
If court action is appropriate, we explain the proposed route, professional fees, anticipated costs and material risks. Recovery depends on the evidence, legal defenses, court decisions and assets available for enforcement. We do not promise a successful collection or a fixed completion time.
Questions About Your Particular Case?
Use a legal consultation to discuss case-specific questions, or the master inquiry form to request a professional-fee estimate. Our minimum debt amount is R$100,000.
Our Main Locations
#1 Sao Paulo, Brazil
#2 Rio de Janeiro, Brazil
#3 Dallas, Texas
#4 El Segundo, California
What We Can Do as Collection Attorneys
Depending on the claim and agreed scope, our work may include document assessment, demand letters, settlement negotiations, appropriate court proceedings and applications to enforce against legally available assets. Each measure requires its own factual and legal basis.
What Our Debt Collection Attorneys Can Collect
We assess documented claims involving:
- Unpaid Invoices
- Royalties
- Promissory Notes
- Unpaid Fees
- Judgments
- Franchise Fees
- Accounts Receivable
The Brazilian collections attorneys at our firm are accomplished negotiators, and develop strategies to resolve debt disputes in a fair and constructive manner. Recognized for our ability to initiate alternate dispute resolution methods, our firm is also a strong performer in the courtroom if litigation is deemed to be necessary.
Discuss your recovery options or request a professional-fee estimate.
Assessing the Debtor and Available Assets
Asset information can help assess whether recovery is economically sensible. We discuss appropriate searches and lawful information sources as part of the proposed scope. Finding an asset does not establish that it can be seized or that its value will cover the debt and costs.
Deadlines for Debt Collection in Brazil
The applicable limitation period depends on the nature of the claim, its documents and relevant events. The Civil Code contains a general period in Article 205 and specific periods in Article 206; special legislation may also apply. There is no single deadline for all unpaid debts.
Arrange a case-specific review promptly. Do not assume that a demand letter or ongoing negotiations preserve a deadline. See the Brazilian Civil Code and our debt limitation-period guide.
Debt Collection In Brazil – Frequently Asked Questions
What is the statute of limitations for debt collection in Brazil?
The limitation period depends on the claim, supporting documents and relevant events. The Civil Code provides general and specific periods, and special legislation may apply. Ask for a case-specific assessment promptly; do not assume ongoing negotiations preserve a deadline.
What is the process for debt collection in Brazil?
We first assess the debt documents, deadlines and recovery prospects. Depending on the agreed scope, next steps may include negotiation, a demand letter, an appropriate protesto or court proceedings. Recovery is not guaranteed.
Can a debt collection agency be used in Brazil?
An agency may handle nonjudicial collection. A law firm can assess legal options and provide representation where required. Foreign creditors may also need document authentication and Portuguese translations, depending on the procedure and documents.
Can wage garnishment be used for debt collection in Brazil?
Salary income is generally protected. Courts may allow attachment in exceptional circumstances, subject to legal requirements and protection of the debtor and family’s subsistence. It should not be assumed to be available for a particular debt.
Can a debt be discharged in bankruptcy in Brazil?
The effect of insolvency proceedings depends on the debtor, claim and applicable legal regime. Recovery, priority and any discharge of obligations require a case-specific assessment.
Can I ask for the compulsory bankruptcy of a Brazilian company for the lack of paying my invoices?
An unpaid invoice alone does not establish grounds for a bankruptcy petition. The debt documents and statutory requirements must be assessed. Being a foreign creditor is not by itself a blanket bar; additional requirements may apply.
Are there any consumer protection laws in Brazil that pertain to debt collection?
Yes. Where the Consumer Defense Code applies, debt collection must respect its protections, including restrictions on abusive collection conduct. The relationship and proposed collection steps should be reviewed before action.
What is the “Código do Consumidor” and how does it affect debt collection in Brazil?
Brazil’s Consumer Defense Code governs consumer relationships and includes rules on debt collection. Whether it applies to a particular commercial relationship depends on the facts. It does not replace the need to assess the contract, debt documents and appropriate procedure.
Request a Debt Collection Fee Estimate
Minimum debt: R$100,000 (roughly US$20,000, depending on exchange rates). In your brief message, include the approximate debt amount and currency, debtor location and type of supporting document. Please do not send confidential documents at this stage. For substantive legal questions, book a consultation.
Send a service inquiry
Tell us what you need. Our team will reply by email about scope and fees.