The Corporate lnsolvency Law and New Perspectives

The current Brazilian legislation on corporate insolvency law entered into force in 2005 by Federal Law 11,101, which represented a long-anticipated mindset change in regard to the previous  Decree-Law 7.661, which had been enacted  in 194 5. Law 1 1, 101 incorporated principles of the World Bank and the IMF, anel its  purpose was to create an efficient insolvency system and co allow  negotiations between debtor and creditors to take place.

As such, Law 11,101 provided for three court proceedings: judicial reorganisation, expedited reorganisation and bankruptcy liquidation. Only debtors engaged in business activities are subject to those proceedings; the  insolvency of consumers and  civil associations, as well as other enti­ties such as financial institutions and cooperatives, is regulated by other statutes.

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