The debtor’s failure to act in order to protect their rights and the feasibility (under Brazilian law) of cr editors indirectly enforcing such debtor’s rights (as an “indirect” subrogation) in Court

Abstract

This paper analyzes the debtor’s failure to act in order to protect their rights in situations where such failure to act causes the non-performance of the debtor’s obligations with their creditors. This research investigates the legal aspects of such situation as regulated in France, Italy, Portugal, Spain, and Peru, while comparing such findings to a Brazilian Law perspective. Considering the fact there is not a general rule that ensures creditors to enforce such debtor’s rights in court under Brazilian Law, this paper seeks to shed light on alternative legal proceedings which may be employed to protect creditors’ rights. Finally, in order to effectively address the protection of creditors’ rights, the paper proposes a legislative amendment.