The 2020 reform modernized Law 11.101/2005, aligning it with international best practices and reinforcing the effectiveness of corporate recovery. Early on, a 180-day moratorium was established, authorizing only one extension subject to the debtor's absence of fault and exempting enforcement of credits secured by bankruptcy proceedings or those secured by fiduciary guarantees of essential assets. 

To encourage consensual solutions, the law consolidated preventive negotiation, gave mediation a leading role, and required an economic feasibility report upon request. The General Creditors' Meeting became hybrid or virtual, allowed last-minute adjustments, and received a more objective cramdown process, guided by equitable treatment and proven feasibility. 

DIP financing gained its own rules: payment priority even in bankruptcy, the possibility of collateral on capital assets, and a liability cap of up to 10 %. In the tax sphere, federal installment plans were authorized for 120 installments and the use of tax losses to pay off up to 30 % of the debt, mitigating one of the system's biggest bottlenecks. 

Individual rural producers now have access to the institute without commercial registration, upon proof of activity; economic groups have obtained clear criteria for procedural or substantive consolidation; and rules inspired by the UNCITRAL Model Law have facilitated the recognition of foreign processes and international coordination. 

After the plan is approved, amended versions are permitted in light of supervening events, and the conversion of bankruptcy into negotiated liquidation can be approved by the classes to preserve value. The reform also detailed duties, surety bonds, and replacement of the judicial administrator, increased penalties for willful acts by the debtor, and imposed broad electronic transparency. The result is a faster, more predictable, and more competitive restructuring environment, requiring legal professionals to master new tools to maximize business preservation and creditor returns.