How Extrajudicial Recovery Can Affect Your Wallet

Extrajudicial Recovery on the Rise in Brazil

According to G1, the request for extrajudicial recovery by Raízen, which accumulated debts of R$ 65.1 billion, is a clear sign that many companies are seeking alternatives to avoid judicial recovery. Extrajudicial recoveries jumped from 16 in 2021 to 84 in 2025, reflecting a significant shift in the financial landscape of Brazilian companies.

What’s behind this increase? The combination of high interest rates, currently at 14.25% per year, and the economic impact of the pandemic has led a growing number of companies to negotiate their debts in a simpler and less costly manner.

What This Means in the Bigger Economic Picture

The rise in extrajudicial recovery requests is a direct reflection of Brazil's economic context. With high Selic rates and pressure on operational costs, many companies, especially those that took loans during the low-interest phase of the pandemic, are facing financial difficulties.

These movements do not only affect large groups like Raízen or Casas Bahia but also impact the job market and local economy. When a company restructures, it can mean job retention and, consequently, financial stability for many families.

Practical Impacts on Your Wallet

If you’re a salaried worker, you may be wondering how all this influences your personal finances. An increase in extrajudicial recoveries indicates that companies are struggling. This can lead to:

• Increased unemployment: Companies unable to restructure may lay off employees to cut costs.
• Salary reductions: To avoid layoffs, some companies may opt to cut salaries.
• Price changes: If a company restructures to reduce costs, it may affect the prices of the products and services you consume.

Moreover, if you have investments in stocks or fixed income, the financial health of companies directly impacts the returns you may receive. Investors are more cautious, and this can affect the market as a whole.

Practical Steps You Can Take

In light of this scenario, it’s crucial for you to start looking at your finances carefully. Here are some suggestions:

• Organize your budget: Use the 50/30/20 method to ensure you’re allocating 50% of your income to needs, 30% to wants, and 20% to savings and investments.
• Create an emergency fund: Having at least 3 to 6 months of expenses saved can help during uncertain times.
• Review your investments: Stay alert to the health of the companies you invest in and consider diversifying your portfolio to reduce risks.

Connecting with Financial Organization and ADXIS

The current economic landscape may seem challenging, but with good financial organization, you can protect yourself against the risks that come with it. The 50/30/20 method, which you can apply with the help of ADXIS, is a practical way to ensure your finances are in order, even in uncertain times. Remember: being prepared for market fluctuations is an essential part of your financial health.