Understand how debt protest works!

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Dealing with default is something that is commonly done by all companies. At very high levels, it compromises the business's finances and puts its financial health and, consequently, its continuity at risk.

However, in some cases, the friendliest debt collection techniques do not have czech republic phone number list expected effect, making more drastic measures necessary. One such measure is the so-called debt protest. To understand how it works, read our article with everything you need to know about this subject.

What is the function of debt protest?
Debt protest is the process by which a person — natural or legal — registers an amount that they have the right to receive from another person, regardless of whether the person is natural or legal. By doing so, we say that they are protesting the debt (or the title, as it is also called). The entire debt protest procedure is protected by Law No. 9,242 of 1997.

There are several types of debts that can be the subject of a protest. The most common types include promissory notes, duplicates, checks returned due to lack of funds, late rental or service contracts, unpaid bills or even unfulfilled court judgments.

In practice, the protest serves to publicize that the debt has not been paid. As it is an act monitored by the judiciary and has the public trust of the notary offices, it ensures that the rights of both debtors and creditors are protected and increases the chance of reaching a resolution to the issue.

It is important not to confuse protesting your debt in a notary's office with legal action. By protesting your debtor in a notary's office, you will not be suing him, which avoids a series of costs and inconveniences arising from this type of problem.

Proof that protesting titles is usually an efficient way of recovering credits owed is data released by the Brazilian Institute of Title Protest Studies (IEPTB), which shows that up to 65% of titles sent for protest are resolved within 3 business days .