Bankruptcy filings in Brazil declined 24.3% in February compared to the same month in the previous year, according to data from credit research firm Boa Vista SCPC.
In the 12-month period through February, the indicator fell 19.8% year over year.
Meanwhile, applications for judicial recovery decreased 14.5% during the same 12-month period.
"After a period of intense retraction of economic activity, reduction of consumption, restriction and increase in credit, among other factors, companies show more solid signs of solvency indicators, a trend that should continue since the economic scenario has shown recovery in sectors," the credit research firm noted.
Judicial recoveries are part of Brazil's bankruptcy law where debtors must present creditors with a recovery plan to pay back debt.
