Judicial recovery requests in Brazil reached 129 incidences in July, down 26.3% compared to the year-ago period, according to credit research firm Serasa Experian.
Micro and small companies had 70 requests for judicial recoveries in the month, followed by medium-sized firms with 37 and large companies with 22. Judicial recoveries are part of Brazil's bankruptcy law where debtors must present creditors with a recovery plan to pay back debt.
For the accumulated year, 814 requests for judicial recoveries were received, down 25.9% annually.
Meanwhile, the number of bankruptcy filings was 157 in July, falling 16.9% compared to the same month in 2016. From January to July, there were 986 bankruptcy claims made, down 6.8% from the same period in 2016.
The decline in judicial recovery requests and bankruptcy filings was driven by the reduction of inflation and interest rates, the stabilization of the dollar and the slow recovery of economic growth, Serasa Experian economists said.
Judicial recoveries are part of Brazil's bankruptcy law where debtors present creditors with a recovery plan to get out of debt.