Corporate bankruptcy filings have skyrocketed under Lula’s government

Court-supervised bankruptcy and reorganization applications rose in 2023, according to data from the Cerasa Experian. The numbers recorded between January and March of this year, which marks the beginning of the Lula 3 government, were 44% and 33% higher than for the same period in 2022, respectively.

Lola Haddad’s influence is already beginning:
In the first quarter of this year alone, applications for judicial recovery increased by 37% and bankruptcies increased by 44%.

And it tends to get worse…worrying!

– Helio Beltrao April 13, 2023

In the filing records for the period, 255 filed for bankruptcy and 289 filed for judicial recovery. In the same period a year ago, the first data closed at 177 and the second at 210. The data attracted the attention of businessman Helio Beltrau. He described the situation as “worrying”.

Reaching current levels is “inevitable,” said Louise Rabih, an economist at Cyrasa, in light of the “worsening corporate defaults.” According to his analysis, “insolvency” (the inability of companies to pay debts) will continue to grow.

The Serasa Bankruptcy and Judicial Recovery Index numbers for March show the halt of five consecutive years of decline for bankruptcy filings and three years of judicial recovery.

To calculate the index, Cerasa conducts a monthly survey across Brazil on these requests. The data the company uses comes from forums, bankruptcy courts, and Official Gazette And justice states.