A Cultural Question

Are there any problems with a U.S. claimant pursuing a claim against a debtor in your country?

Absolutely. Companies, businesses and industries that have or credits to be charged in Brazil should immediately seek his counsel in Brazil and share all the information needed to achieve the relevance of their claims and get your credit again, including the debtor must pay for lost time by creditor.The Laws of Brazil are very strict for those who donot pay their bills. Considering the excellent relationship between the U.S. and Brazil, currently I am often approached by large groups whowant to review their credit in Brazil.
We consider that the laws will be applied optimallyin favor of the creditor and that the process, according to Brazilian law is fast and effective, both in the Criminal and Civil Court.The outstanding invoices are in dollars. Can the claim made in court proceedings be in dollars?

Certainly. All invoices in U.S. dollars [work]. A Brazilian court admits that the collection process of taking many forms of maintenance, as it speaks to Brazilian law, always with sufficient evidence of the allegations.Generally, if the relationship between the parties is already confirmed, then the law [will restore] all the credit to the lender truth – whether for breach of an agreement, for products delivered or not received or theconsumption yet.
If there is no contractual right to interest, can interest nonetheless be claimed – and if so, at what rate?

Yes, at any given time, the interest may be required and reported in accordance with local law. The Brazilian law and customs of the trade Brazil say [interest should be] 12 percent per year; however, we must always examine the possibility of increasing the interest and fees, depending on the type of business conducted. In a negotiation or agreement of values for the full payment of a credit, we always have the possibility to cut taxes.
Can lawyers in your jurisdiction work upon a contingency fee basis – and if so, what are the typical rates?

Rates or contingency fees are the actual payment that the attorneys should receive for performing the work. Some lawyers prefer, at the end of the process, to charge a percentage that may vary from 15 percent to 30 percent for a fee collection. Others prefer to receive some initially determined fee at the end. It’s also important to note that if there is a lawsuit, there will always be a case for charges to be paid to the court, which will have expenses for maintenance process in pursuit of the debtor or property.
How do court costs compare with the U.S.?

The costs of Brazilian court are considered to be cheaper than those in United States, and the author of the process should pay according to the author’s financial condition.
What language would the court proceedings be in, and do documents have to be translated?
In Brazil, the language would always be Portuguese.Will witnesses be required to visit your country for depositions in the trial?

No. Witnesses may be heard by letter [relating to] the judgment in their country of origin or by a notarized letter. In the future, the hearings in [these types of cases] may be by videoconference.
What are the rules regarding enforcement of a judgment obtained against a debtor in the U.S.?

The enforcement must be met according to local law but does not differ from country to country – the value to be paid is set, the judge determines that the borrower will pay for it and will be summoned to receive knowledge of the decision of process.
The judge sets a deadline for paying, otherwise debtors will have their assets taken by the courts to go to auction and the money received will be given to the lender.
What personal liability exists for the officers of a corporation that has issued checks which have not been honored?

The officers don’t have responsibility. In Brazil, we have the direct responsibility of company members, who must answer for the acts of the company, or [explain] when the corporation doesnot comply with checks and agreements issued.
What liability do officers of the corporation have if the corporation goes into bankruptcy?

As discussed before, if the company went bankrupt, the shareholders of the company must respond to all creditors with the assets of the company, and if the company does not have the ability to pay, the personal assets of member partners must[be used] to pay all debts and claims – especially to workers andgovernment taxes.

By Dr. Rafaele Turkienicz