By: Vitor Ferrari and Ivan Kubala

In the first years of validity of Law 11.101/05, whose text deals with the judicial recovery procedure, research with low credibility consolidated the fallacy that very few companies managed to approve their judicial recovery plan, and of these, only 1% survived the procedure and were restructured.

Due to this lie, the idea was created that the judicial recovery procedure would serve more as a postponer of bankruptcy., a possibility to postpone the inevitable, postponing problems; than as a mechanism that would enable not only the settlement of debts but also the restructuring of the company.

Therefore, it is still common for many business owners to resort to the judicial recovery procedure only when the economic and financial situation of the business company reaches a critical state., which in itself greatly reduces the chances of success of the procedure, which corroborates the maintenance of the aforementioned myth.

In truth, the real purpose of the judicial recovery institute is precisely the recovery of the business society devastated by the economic crisis. For this, it is quite true that there is an extension (preferably accompanied by a reduction) of debt, the so-called stay period.

However, for the process to work correctly and the company to be rebuilt, it is not enough to simply grant the stay period, It is essential that there is a proposal for a feasible judicial recovery plan, improvement of the company's performance, disposal of harmless and onerous assets to the company, raising of resources and improvement in the company's economic indicators.

In other words, the procedure goes far beyond the mere suspension of executions and filing of lawsuits against the recovering party.

The judicial recovery process involves planning and proposing a detailed plan, calculated in detail by specialist lawyers and carefully supervised, in order to ensure the return of the company under recovery to its market niche. In this way, the jobs generated, the social function of the company and its economic activity are maintained.

Furthermore, it is important to emphasize that the entire judicial recovery process requires experienced professionals in the area, and not just anyone is capable of managing a procedure of this size. Therefore, it is extremely important to have the advice of lawyers specialized in the subject.

With the collaboration of Luis Felipe Simão