In force since 2005, Law 11,101 / 2005, which governs Judicial Recovery, has brought numerous advances to the business sector. However, according to opinions of several lawyers in country, who work with judicial recovery processes, among them Ricardo Tosto, specialist and adviser on the subject, this law needs some changes that may make it more practical and with better results. This need for change is due to the fact that, according to research by the National Institute for Judicial Recovery, only 5% of companies that go through a judicial recovery process are able to return to their normal activities.
Since the beginning of the law in 2005 more than 6,900 companies have filed for judicial recovery. Regarding those who filed for bankruptcy, the number stands at 3,859.
According to Ricardo Tosto, the new changes in Law 11,101 / 2005 already have a great benefit for the business sector. Currently, organizations that are part of the same business group have the right to enter with a single judicial recovery process, thus generating a process with lower costs and with much more force and ease of resolution.
The inclusion of small and medium-sized enterprises in the capacity of creditor is also another advantage that merits attention. It is important to note that in Brazil, 90% of the active companies are represented by the medium and small entrepreneur.
According to Ricardo Tosto, a specialist and adviser on the subject, despite the remarkable evolution during the 10 years of the Law of Judicial Recovery, it still lacks certain changes that will serve to give greater support to companies in order to insert them again in Activities. And for this to be done as efficiently as possible, a great strategy would be to find new ways to capitalize on companies in the process of recovery. Another very important point would be a way to make feasible to these companies the payment of their tax debts, facilitating this recovery process even more.