The purpose of the liquidation phase in bankruptcy is to convert the debtor's assets into cash to pay creditors according to the legal order. Law 11.101/2005, revised by Law 14.112/2020, consolidated two central axes: (i) objective priority of payment, defined by articles 83 and 84, and (ii) disposal mechanisms aimed at maximum transparency and the highest possible realizable value.   

In terms of priority, the reform maintained the split between extra-bankruptcy credits (art. 84) and bankruptcy credits (art. 83), but elevated the DIP financing authorized by the court to the category of “super-privileged”, which is now paid off even before the administration expenses up to the limit of ten percent of the subject liabilities.   

The essential legal costs, wages due after the decree, and other expenses essential to the preservation and realization of the estate remain at the forefront. Among bankruptcy claims, the sequence continues to prioritize labor claims (limited to 150 minimum wages per creditor), workplace accidents, secured claims up to the value of the encumbered asset, tax claims, and, finally, unsecured and subordinated claims. The most significant change introduced an express order for "superprivileged" claims, providing predictability for investors and mitigating classification disputes.   

Transparency has become a functional requirement for expropriation. The law now requires that all sales follow a competitive procedure that is electronically disclosed, except for technical justifications approved by the creditors' committee and ratified by the court. The judicial administrator must submit an independent evaluation, an auction calendar, detailed notices, and periodic reports, which are available on the court's digital platform or in the electronic process itself. Recent CNJ resolutions require public registration of acts and prior accreditation of online auctioneers, increasing market scrutiny and reducing information asymmetries.   

The sale may occur in the form of isolated production units, direct sale by sealed bid, or auction in three decreasing bids (art. 142). Any modality requires proof of greater economic benefit to the estate, a minimum of 15 days of publicity, and the possibility of successive bids until closing. Creditors, including secured creditors, may bid and reduce their credit, but are subject to the payment order for repayment of any balance.   

Creditors' committees and the Public Prosecutor's Office oversee each transaction, and the judge can nullify a transaction that violates the parity between bidders or lacks a market value statement. The obligation to publish monthly reports of the bankruptcy estate's accounts reinforces social control and allows for timely challenges. The combination of objective priority, open competition, and electronic scrutiny seeks to balance speed in realizing assets, legal certainty for the acquirer, and distributive justice among creditors. 

In short, Brazilian bankruptcy liquidation now operates on clearer tracks: a rigid payment hierarchy, now open to DIP credit, and a sales process anchored in digital transparency and stakeholder control. For lawyers, receivers, and investors, mastering these parameters is essential to anticipate risks, formulate bids, and maximize value recovery in bankruptcy.