Put: Victor Antony Ferrari, Antonio Mazzucco and Ivan Kubala

Given the current economic crisis, it has become very common to hear that companies we deal with on a daily basis are undergoing judicial recovery. 

But what exactly is a Judicial Recovery after all? 

Judicial Recovery is a judicial procedure that, since 2005, has been helping companies overcome their economic crises, with the renegotiation of their debts with creditors, and this procedure is monitored and legitimized by the Judiciary. 

Judicial Recovery allows Companies to gain some breathing space in order to enable their business to resume, especially with the suspension of Executions and other restrictive measures of assets and rights that directly affect the Company's activities,  

Furthermore, Judicial Recovery allows a series of asset reorganization measures to be taken in favor of maintenance, whether from the sale of assets to the entry of new investments with differentiated guarantees, which makes it interesting to invest assets in Companies that protect themselves and use the Recovery procedure to defend the continuity of the business, the generation of jobs and wealth, thus moving the market as a whole. 

In many cases, Judicial Recovery is also the only way out for a Businessperson who finds themselves facing a bankruptcy request and does not have sufficient assets to fulfill that and other obligations. 

The Recovery procedure can be Judicial or Extrajudicial, and each of them has its own peculiarities, which will be discussed in the following articles. 

The procedure has even been improved, as can be seen from the recent changes brought about by Law No. 14/112/20, which seeks to bring greater legal certainty to those involved, whether debtors or creditors, in addition to allowing greater freedom in negotiations between the parties, always aiming at maintaining the business society, generating jobs and driving the economy as a whole.