Bankruptcy, although it represents the dissolution of a business activity, is not a punitive instrument, but rather a legal procedure aimed at the orderly and responsible liquidation of an insolvent business corporation. Its purpose is to satisfy, in a fair and efficient manner, the credits recognized in the process. Therefore, the sale of the assets of a bankrupt company – liquidation of its assets – must observe strict criteria of priority in payment and ensure maximum transparency in the disposals, as provided for in Law No. 11,101/2005, recently updated by Law No. 14,112/2020.
One of the main innovations brought about by the legislative reform was the modernization of the mechanisms for selling assets from the bankrupt estate. The new legal text now prioritizes the sale of assets by electronic means, such as online auctions and specialized platforms, with broad dissemination and a focus on maximizing the value obtained. The measure seeks to make the bankruptcy process more agile, competitive and transparent, as well as reduce costs and increase access for potential buyers.
Furthermore, Law 14,112/20 introduced greater flexibility in the choice of sale modalities, authorizing the judicial administrator, with the approval of the court, to opt for closed proposals, direct sale or any other means that proves most efficient in the specific case, as long as publicity and equal treatment among interested parties are guaranteed. The intention is to adopt the most advantageous solution for the bankrupt company and its creditors in the specific case, respecting the principles that guide the process.
Regarding the allocation of the amounts collected, the rule of observing the legal order of payments remains in force, which guarantees priority to extra-bankruptcy credits (such as expenses with the process itself), followed by labor credits, with a limit of up to 150 minimum wages per creditor, and then by credits with real guarantees, tax, unsecured and others. Observance of this order is fundamental for the legality of the process, and is maintained by Law 14,112/20.
Another major advance brought about by Law 14,112/20, which also prioritized the principles of economy and speed, is the possibility of quickly closing the bankruptcy case if there are no other assets to pay the remaining credits. It is not uncommon for the bankruptcy to be in deficit, and therefore, part of the credits cannot be paid. However, the unnecessary maintenance of the process, with a view to searching for assets, is not beneficial to either party.
Another point is that Law 14,112/20 was a positive innovation, allowing the bankruptcy process to be closed quickly once it is concluded that there are no assets. Obviously, the Law grants creditors who feel aggrieved the right to question the closure and fight for the bankruptcy process to continue, if they have a well-founded understanding of the existence of other assets.
This change was essential, as in addition to ensuring greater dynamism in the bankruptcy procedure, it ensures greater savings for the Bankrupt Estate, since by reducing the processing time of the process, its cost is also reduced; and it allows the bankrupt entrepreneur to return to the market more quickly, fostering entrepreneurship.
Therefore, the updates brought by Law 14.112/20 were important to ensure greater efficiency in bankruptcy proceedings, making them less time-consuming and costly. Even with the positive changes, bankruptcy is still a complex and unique procedure, with its own procedures, which requires the work of experienced lawyers in the field.