Business Law: Filing for Bankruptcy in Brazil

It is not all the days you will be sailing smoothly in finances. There may come a time when debts begin to cripple you down, and before you realize, they outweigh the earnings and profits. In case your business finds itself in that situation, you should know what options you have.
An exit for companies that are struggling with debts is to file bankruptcy. It may be the only resolution for entities, which cannot honor their debts, or those that don’t have the hope of clearing their debts. In the legal sphere of Brazil, bankruptcy is the liquidation of the assets of a legal entity so that value from the goods can be extracted.
Debtor’s bankruptcy may be requested by the debtor, heir or surviving family member, a shareholder of the debtor, and any creditor. The procedure of filing bankruptcy is one that you need to know as a business owner because you may in one day find your company in such situation.
However, if you are not able to grasp the context of filing bankruptcy, and that time comes, you can as well seek the help of a bankruptcy attorney. In case the debtors feel that it’s not possible to have judicial recovery, then bankruptcy may be the option. Nonetheless, before this is granted, the debtor should present to the court all the reasons why the business cannot proceed with its economic activities.
Financial statements for the past three fiscal years before the filing need to be presented in court including balance sheet, statement of earnings, cash flow statement, and statement of retained earnings. The nominal list of creditors is also needed and a list of goods and rights comprised of the assets together with the estimated value.
All books of accounts that are needed should also be presented and the company’s administrators within the past five years. There are consequences of filing a bankrupt, and they include those that affect the bankrupt entity, the company’s goods, and the bilateral contracts that may have been signed by the bankrupt company.
Filing for bankruptcy can be a complex process that will need the help of legal experts like Ricardo Tosto de Oliveira Carvalho. Ricardo Tosto is a founding partner of the law firm called Leite, Tosto e Barros Advogados. Mr. Tosto is a prominent leader and strategist serving in the Brazilian legal practice.
The leader founded a small law office, which has grown to be the most respected corporate litigation law firm serving the area. Tosto defended many companies and public personalities in legal cases.

One thought on “Business Law: Filing for Bankruptcy in Brazil

  1. He also provided legal services for Brazilian corporations as well as multinationals. Businesses that need the services of a lawyer to handle their bankruptcy filing and defense case should consider a law firm like Leite, Tosto e Barros Advogados. That also means that assignment help australia is going to write a full fledge campaign about it.

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