precatoria

A precatorio is a formal legal document used in Brazil to acknowledge and enforce court-ordered debts against public entities. When a court rules that a government agency or municipality owes money to an individual or company, and all appeals have been exhausted, the debt is then registered as a precatorio. This process is mandated by the Brazilian Constitution.

Precatórios are essentially court orders for payment that are then submitted to the relevant public entity. Due to budgetary constraints, these payments are typically not made immediately. Instead, they are placed on a chronological list and paid in the order they are received, based on the year of their issuance. There are specific rules regarding the priority of payment, with certain types of debts, such as those for food or medical expenses, receiving preferential treatment.

The payment of precatórios can take several years, and their value can be subject to adjustments for inflation. This long waiting period has been a significant issue, leading to a substantial backlog of outstanding debts. Brazil has implemented reforms and special payment plans in an attempt to accelerate the process and address the accumulated debt. Obtaining a precatorio is the final step in legally securing a debt owed by the government, but the actual receipt of funds depends on the established payment schedules and available funds.