Bankruptcy costs in Brazil in comparison to North American studies

The research aimed to identify, measure and classify the costs of bankruptcy procedures subject to Brazilian bankruptcy law, in order to compare them to the costs found in similar North American studies. The research was conducted throughout 2013, when we referred to several cases in the districts o...

Descripción completa

Detalles Bibliográficos
Autores: Jupetipe, Fernanda Karoliny Nascimento, Martins, Eliseu, Mário, Poueri do Carmo, Carvalho, Luiz Nelson Guedes de
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2017
País:Brasil
Institución:Fundação Getulio Vargas (FGV)
Repositorio:Revista Direito GV
Idioma:portugués
OAI Identifier:oai:ojs.periodicos.fgv.br:article/68895
Acceso en línea:https://periodicos.fgv.br/revdireitogv/article/view/68895
Access Level:acceso abierto
Palabra clave:Bankruptcy
Reorganization
Costs of bankruptcy
Falência
Recuperação judicial
Custos de falência
Descripción
Sumario:The research aimed to identify, measure and classify the costs of bankruptcy procedures subject to Brazilian bankruptcy law, in order to compare them to the costs found in similar North American studies. The research was conducted throughout 2013, when we referred to several cases in the districts of São Paulo- SP, Belo Horizonte-MG and Contagem-MG, to data collection, followed by analysis of this data in accordance to the theoretical framework used. It was found that, on average: the payments incurred in liquidation were 35% of the final asset of the bankrupt; the bankrupt’s assets of bankrupt lost 47% of its value; the total recovery rate of creditors was 12% and the legal process lasted nine years. As for processes, direct costs were 26% of the initial asset of the firm, the recovery rate of creditors was 25% and they lasted four years, on average. The results indicate that the sample processes had a longer duration, paid less creditor’s values in the judicial recovery and the reimbursement rate in liquidation was a little higher than the results found on North American studies.