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Understand Why Common Justice Is the Only Authority to Judge Debt Restructuring Cases Under Law No. 14,181/2021 and the Impact of This Decision on Millions of Brazilians.
The over-indebtedness is a problem that affects millions of Brazilian families and compromises the existential minimum for those struggling to balance their finances. In 2023, the Central Bank pointed out that more than 80% of indebted families face difficulties in settling their commitments. To address this scenario, the Law No. 14,181/2021 amended the Consumer Protection Code (CDC) and established a special debt restructuring process, outlined in Articles 104-A and 104-B. The goal is to restore the dignity of the consumer and allow for financial reintegration.
However, a crucial question arose among lawyers and courts: can the Special Civil Court (JEC) judge this type of case? The answer, as decided by the Superior Court of Justice (STJ) in 2023, is no.
Special Procedure Requires Broader Structure
The debt restructuring procedure consists of two phases: conciliatory and post-conciliatory. In many cases, it involves dozens of creditors in a true competition for credits. This complexity, according to Statement 08 from Fonaje (National Forum of Special Courts), removes the action from the jurisdiction of the Courts, which are focused only on simple and quick cases.
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Any Brazilian over 18 years old can now choose at a notary who will take care of their assets and decisions in case they lose capacity in the future, thanks to self-curatorship, an instrument that gained national strength with a CNJ regulation from October 2025 and changed estate planning in the country.
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Brazilian justice orders the Union, Iphan, Pará, and the City Hall to “save” the ghost town of Fordlândia from ruins, with a diagnosis in 90 days, land regularization, and fines for the abandonment of historical heritage.
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The STJ decides that a woman who left her career for more than 30 years to take care of the house, children, and family is entitled to lifetime alimony after divorce; the decision by the 3rd Panel recognizes extreme financial vulnerability and values invisible work in marriage.
The process also seeks to create a payment plan of up to five years, preserving the debtor’s existential minimum. Therefore, it requires a detailed technical analysis of contracts, deadlines, and amounts. This characteristic makes swift judgment typical of the JEC impossible, as its structure is geared towards simplicity.
Nature of Insolvency and Legal Exclusion
The §2 of Article 3 of Law No. 9,099/1995, which regulates the Courts, excludes from its jurisdiction cases of bankruptcy, tax issues, and public treasury interests. By analogy, the procedure of Law No. 14,181/2021 should also be excluded, as it deals with situations similar to civil insolvency. It addresses the consumer’s entire debt set, requiring a broad and in-depth approach.
Minister Luiz Fux, in analyses from 2021, emphasized that the prohibition should cover all cases sharing the nature of those explicitly prohibited. This view reinforces the need for cases to proceed in Common Justice, rather than in the Courts.
STJ Decision Consolidated the Jurisdiction of Common Justice
In 2023, the 2nd Section of the STJ judged the Conflict of Jurisdiction No. 193,066/DF, a decision that changed the course of over-indebtedness actions in the country. The court determined that only the State and District Common Justice can adjudicate these demands, even when there is interest from federal entities, such as the Federal Savings Bank.
The decision was unanimous and based on the complexity of the competition of creditors, as outlined in Articles 104-A, 104-B, and 104-C of the CDC. The STJ concluded that the Special Civil Court lacks the structure and technical competence to handle these cases. The reason is clear: the process involves broad analysis, multiple contracts, and simultaneous negotiations.
Practical and Social Effects of the Decision
The Over-Indebtedness Law, enacted on July 1, 2021, represents a milestone in consumer protection and in the promotion of human dignity. It allows indebted individuals to negotiate with their creditors under judicial mediation. Thus, it ensures minimum conditions for survival and promotes economic and social reintegration.
For this mechanism to work, it is essential that actions are filed in the Civil Court of Common Justice. This court has a suitable structure and enhanced cognitive power to fairly and balanced analyze debts. According to attorney Patrícia Vieira, a specialist in Consumer Law, “proceeding in the Special Court would compromise the law’s purpose, as there is neither time nor structure for broad negotiations with all creditors.”
Legal Advancement and Protection of the Brazilian Consumer
The decision by the STJ in 2023 consolidated an essential understanding: the over-indebtedness procedure is special and incompatible with the model of Special Courts. Ensuring that the action proceeds in Common Justice guarantees sufficient time for negotiation, effective protection for the debtor, and actual compliance with Law No. 14,181/2021.
This measure reinforces the judiciary’s commitment to financial inclusion, education for responsible consumption, and the social function of credit. It also reflects the State’s concern for protecting the consumer and preventing abuses that exacerbate family indebtedness.
Over-indebtedness, therefore, is more than a financial issue — it is a social and legal problem that requires structure, specialization, and sensitivity.
What do you think: is Brazil really prepared to fully apply the Over-Indebtedness Law and restore economic dignity to consumers?
É o resultado do progresso do governo ao povo, dividas que nos resta, e não tem como equilibrar as contas em dia sabendo que o nosso salário não dá nem para ir ao supermercado quanto mais pagar aluguel, ou mesmo sem aluguel as tarifas do gov leão etc são superiores do nosso equilíbrio econômico dentro de casa, dar de Cesar que é de CeZar e que não é de Ceszar dar também ~
Que homem lindo esse que está segurando os papéis