The evolution of the judicial recovery institute: an analysis of impacts after the COVID-19 pandemic

The main objective of this article is to present the relationship between the judicial recovery institute and the consequences generated by the COVID-19 pandemic. The development of this study was carried out from the perspective of the principles of Law No. 14,112 of December 24, 2020. The methodology employed is a bibliographic study (based on classical literature of bankruptcy, insolvency, and corporate law) and documentary (relevant legislation). The method used also involves a descriptive and exploratory research approach, with a qualitative data analysis. It was observed that the restrictions and economic impacts generated by the pandemic affected the restructuring of debts contracted by companies, thus having the potential to worsen the economic and financial crisis faced by debtors undergoing restructuring. Furthermore, the consequences of the pandemic directly impacted the possibility of non-compliance with obligations that were assumed by the debtors. Finally, upon analyzing the impacts of the legal changes that occurred in light of the recent pandemic context, it is possible to perceive that these changes have shown modest results, with no substantial increase in the number of requests for judicial recovery, even during a crisis. This leads to the conclusion that many companies ended up ceasing their activities irregularly