Brazil's CNJ adopts rule to extinguish low‑value debt lawsuits

The National Justice Council (CNJ) approved new provisions that allow courts to dismiss civil actions for debts of up to R$ 10 000 when the debtor cannot be located or no assets are subject to seizure. Under the rule, banks must demonstrate the debtor’s CPF or CNPJ; if this information is missing, the claim is rejected. The decision does not erase the debt, and banks may file a new suit within the statutory prescription period.

The measure, incorporated into CNJ resolutions 547/2024 and 683/2026, also authorises the extinction of longstanding tax execution cases that have been idle for more than 15 years, provided the public creditor fails to identify assets within a 90‑day notice period. The CNJ aims to reduce the heavy backlog of more than 4 million pending execution cases, streamline judicial workload, and encourage alternative, extrajudicial recovery methods.

Legal experts note the reform balances efficiency with procedural guarantees, warning that improper application could prematurely remove recoverable credits while offering a path for consensual settlements.