The role of Brazilian courts in the development of bankruptcy law

examples from U.S. and Brazilian case law

Abstract

This paper seeks to understand the contribution of past decisions to the improvement of bankruptcy law, allowing fast and appropriate responses to economic and financial crises. Under the Brazilian Executive Order 7661, legal scholars urged for the adoption of a system aimed at companies’ reorganization, which was slowly acknowledged by the courts and later established in law. Currently, the courts have lead positions in relation to  estructuring of economic groups and recognition of cross-border insolvency, for instance. On the other hand, it is essential to recognize the limits of courts and the source of its legitimacy.