Brazil's CNJ Revamps Debt Enforcement System and Clears Long‑Standing Fiscal Debts

The National Justice Council (CNJ) has updated the Sisbajud platform, introducing real‑time account blocking, permanent orders and automatic retention of incoming funds. These changes enable judges to enforce execution orders within hours, sharply restricting companies' cash flow and forcing accountants to work closely with legal teams to monitor, protect working capital and prepare rapid defenses.

In a separate move, CNJ Resolution 547/2024 authorises the termination of fiscal execution actions that have been idle for more than 15 years. Courts must notify creditors within 90 days, and if no assets are identified, judges may declare intercorrente prescription, removing the debt from the debtor's CPF and halting further collection. The measure targets taxes such as IPTU, IPVA and ITR, as well as municipal fines and federal contributions, but does not affect private credit obligations.