Debt collection defense
Defense for people being sued over a debt
Tax enforcement proceedings (execução fiscal, when the government sues to collect a tax debt), enforcement of bank debt, frozen accounts, seizure of assets and property going to auction. Review of the statute of limitations, nullity and excessive charges, with the calculation of the amounts checked. In-person service in Foz do Iguaçu and online throughout Brazil.
What we do
Before you pay, check whether the claim holds up
In an enforcement proceeding (a lawsuit to collect a debt), the creditor asks the judge to collect the debt directly, with account freezes and seizure of assets (penhora). Many of these claims have flaws that can be challenged: a debt barred by the statute of limitations, a calculation above what is owed, irregular service of process or an instrument that does not meet the legal requirements.
Tax enforcement proceedings
Collection of IPTU (property tax), ISS (municipal service tax), ICMS (state sales tax) and federal taxes entered in the government's register of overdue debts (dívida ativa).
Bank debt
Enforcement of contracts and bank credit notes (cédula de crédito), and collection by banks or credit unions. See bank debt
Account freezes and seizures
Requests to release accounts, salary and assets that the law protects from seizure.
Property auctions
Requests to suspend or annul a court auction or a bank auction, in financing secured by a fiduciary lien on the property (alienação fiduciária).
Deadlines and stages
Deadlines and stages of an enforcement proceeding
Short deadlines, stages that cannot be undone and amounts that need to be checked
Short deadlines
The motion to oppose the enforcement (embargos à execução) must be filed within 15 business days, as a rule counted from the date proof of service is filed in the case (Brazilian Code of Civil Procedure, arts. 915 and 231). In a tax enforcement proceeding, it is 30 days after the court is secured (Brazilian Law 6.830/80, art. 16). Missing the deadline limits the defense.
Financed property
If the bank consolidates ownership of the property without the overdue installments having been paid, the debtor is left only with a preference to buy it back (STJ, Theme 1.288, for consolidations after Brazilian Law 13.465/2017). The time to act is before that.
Checking the amounts
The interest, inflation adjustment and fines charged in the enforcement proceeding are checked in the calculation. Charging more than is owed is a ground for defense (Brazilian Code of Civil Procedure, art. 917, III).
The calculation in bank debt
Dr. Jin explains the legal rules and the financial calculation in plain language. He redoes the interest calculation and reviews the contract clauses to check for interest above the limit set by law or by the contract, and for illegal or disproportionate terms. When the bank instrument cannot be enforced, or does not state a certain and fixed amount, he asks the judge to declare the instrument unliquidated and to annul the enforcement proceeding. Whenever he states a deadline, he cites the law.
Situations we handle
This may be your situation
Common situations for people being sued over a debt. If yours is similar, send the case number by WhatsApp so Dr. Jin can check the dates and the amounts.
A lawsuit to collect a debt that has been idle for years
If the creditor spent years without finding you or your assets, the debt may have become time barred during the lawsuit. Every date in the case needs to be checked.
Salary or pension frozen in your account
The law protects salary, pension and savings of up to 40 minimum wages. The deadline to ask for the release is 5 days after you are formally notified.
The city government collecting old IPTU (property tax)
IPTU is also subject to a statute of limitations, and a tax enforcement proceeding that sat idle for years may have missed the deadline. Agreeing to an installment plan before checking may mean giving up this defense.
Financed property going to auction by the bank
Before the auction, the bank must notify you in person to pay the overdue installments. The sooner the notice is reviewed, the more options remain open.
Seizure of the home you live in
The home where the family lives is usually protected from seizure, with exceptions set by law, such as a debt for the IPTU on that same property or for the home's own financing.
Questions
Frequently asked questions about enforcement proceedings, account freezes and auctions
My account was frozen. What should I do?
An account freeze usually comes from a court order in an enforcement proceeding. Salary, pension and savings up to 40 minimum wages are, as a rule, protected from seizure (Brazilian Code of Civil Procedure, art. 833, IV and X), and their release can be requested in the same lawsuit. The deadline to challenge the freeze is 5 days after you are formally notified (Brazilian Code of Civil Procedure, art. 854, §3).
What is the statute of limitations in an enforcement proceeding?
It is the loss of the right to collect because of the passage of time. A tax debt expires after 5 years (Brazilian National Tax Code, art. 174), and a lawsuit that sits idle without any assets being found can lead to the limitation period running out during the lawsuit itself (prescrição intercorrente, Brazilian Law 6.830/80, art. 40, §4). An old debt is not automatically time barred: it depends on the dates and the steps taken in the lawsuit.
My property is going to auction. Can anything still be done?
It depends on the stage. In a court auction, it is possible to challenge the appraisal, the notice and a grossly low price, which as a rule is a bid below 50% of the appraisal (Brazilian Code of Civil Procedure, art. 891, sole paragraph). In a bank auction, for property financed with a fiduciary lien (alienação fiduciária), the debtor must be notified of the dates, and before ownership is consolidated in the bank's name the law gives 15 days after notice to pay the overdue installments (Brazilian Law 9.514/97, art. 26, §1). The earlier the review, the more options there are.
What is the difference between embargos and a pre-enforcement objection?
The motion to oppose the enforcement (embargos à execução) is the full defense, with a deadline, and in a tax enforcement proceeding it requires securing the court (a deposit, guarantee or assets pledged to cover the debt). The pre-enforcement objection (exceção de pré-executividade) is a simpler petition, without a guarantee, for issues the judge can recognize without taking evidence, such as the statute of limitations and the nullity of the instrument.
Which documents should I bring?
The summons or court order you received, the case number, the statement of the freeze, the contract or the certified debt record (CDA) and proof of payments. Notices from the bank or the city government also help with the review.
Being sued for a debt, account frozen or property going to auction?
If your account was frozen, you have 5 days to ask for the release of what the law protects (Brazilian Code of Civil Procedure, art. 854, §3). In-person service in Foz do Iguaçu and online throughout Brazil.