Brazil sees record rise in delinquent companies and surge in judicial recoveries

A study by FecomercioSP using Serasa Experian data shows that 7.2 million Brazilian firms—31 % of active businesses—were delinquent in 2025, with 6.8 million micro‑ and small enterprises accounting for over R$141.6 billion in unpaid debts. The services sector leads with 52.8 % of firms in the red, followed by commerce at 35 %.

Judicial recovery requests jumped 61.8 % in 2024 to 2,273 cases, the highest level since the series began in 2006, and the upward trend continued into early 2025. Consumer credit analysis attributes most household credit strain to credit cards (42 % of negative entries), bank loans (26 %) and store credit (23 %). Households prioritize internet, water and electricity bills when cash is tight.

In Rio Grande do Sul, personal delinquency fell slightly to 37 % in June 2026—the second consecutive monthly decline—linked to federal debt‑renegotiation programs. Meanwhile, a Paschoalotto‑run platform reports that 81 % of its 2026 portfolio consists of debts up to 90 days old, up from 70 % in 2024, indicating consumers are negotiating earlier. Digital payments now represent 38.7 % of settlements.