The Business Recovery and Bankruptcy Law (No. 11.101/2005) is under suspicion and investigation due to accusations of corruption involving magistrates, court administrators and lawyers in recovery and bankruptcy proceedings.
Investigating cronyism, the Senate plans to review the law in 2025, especially after the recent wave of Federal Police operations that resulted in the removal of judges in Mato Grosso do Sul. The Ministry of Finance has proposed significant changes, such as the creation of a fiduciary manager to reduce the influence of judges in appointing judicial administrators.
Leonardo Dias points out that the proposed change could strengthen creditor groups, suggesting that the perception that court administrators are overpaid is based on rare cases of high complexity. He defends the importance of the judicial administrator as an impartial agent, warning that their election by creditors could generate conflicts of interest.
