I have debts in Brazil and live abroad: can I be collected from and sued?

Can I be collected from for debts in Brazil while living in Portugal?

Yes, and the same applies to anyone living in the United States, Japan or any other country. A debt taken on in Brazil still exists after the move, and the creditor can pursue it in the Brazilian courts. Moving abroad does not suspend the limitation period, because the grounds for suspension (Civil Code, arts. 197 to 199) do not include a debtor living overseas. Rocha Advogados, based in Goiânia, Brazil, assists Brazilians abroad who have discovered a collection claim, a credit blacklisting or a lawsuit in Brazil.

A creditor holding a signed contract, a cheque or a promissory note can go straight to an enforcement action (execução). A creditor without such a document files a collection claim or a payment order action (monitória) and, after judgment, moves on to enforcement of the judgment (cumprimento de sentença).

How do Brazilian courts serve someone who lives abroad?

Service of process (citação) is the act that notifies the debtor of the lawsuit and opens the period for a defence. When the creditor knows the address abroad, the judge issues a letter rogatory (carta rogatória). The letter rogatory asks the courts of the other country to deliver the summons (Code of Civil Procedure, art. 237, II), and it usually takes months to be carried out.

Service by public notice (citação por edital) is published instead of being delivered in person. The Code of Civil Procedure allows it when the debtor is in an unknown, uncertain or inaccessible place (art. 256, II). A country that refuses to carry out letters rogatory is treated as inaccessible (art. 256, § 1º). The whereabouts are only treated as unknown after the searches fail, including searches in public databases (art. 256, § 3º).

If a debtor served by public notice does not appear, the judge appoints a special guardian (curador especial), a role performed by the Public Defender's Office (Code of Civil Procedure, art. 72, II and sole paragraph). The guardian defends the case but does not know the facts or hold the debtor's documents. That is why anyone who discovers the lawsuit should appoint a lawyer.

When the creditor knew the address abroad and asked for public notice without trying a letter rogatory, the service can be challenged. In the enforcement of a judgment, the debtor may argue lack or nullity of service if the case ran in default (Code of Civil Procedure, art. 525, § 1º, I).

Can the creditor freeze my bank account in Brazil?

Yes. At the creditor's request and without prior notice, the judge orders the banks to freeze the debtor's money up to the amount being enforced. The order goes through the Central Bank's electronic system (Code of Civil Procedure, art. 854). After the freeze, the debtor is notified through his lawyer or in person (art. 854, § 2º) and has 5 days to prove that the amount is exempt from seizure or excessive (art. 854, § 3º).

The Code of Civil Procedure protects part of the money. Salaries, retirement benefits, pensions and self-employed earnings are exempt from seizure (art. 833, IV), as are savings accounts up to 40 minimum wages (art. 833, X). That protection does not apply against child or spousal support debts or to amounts above 50 minimum wages a month (art. 833, § 2º). As a rule, a Brazilian judge reaches accounts and assets in Brazil.

How long do I have to defend myself?

In the enforcement of a contract or promissory note, the debtor is summoned to pay within 3 days (Code of Civil Procedure, art. 829). The defence is made through a motion against enforcement (embargos à execução), within 15 business days (arts. 915 and 219), with no need for seizure, deposit or bond (art. 914). With service by letter rogatory, the period starts when the notice of service or the completed letter is filed in the case (art. 915, §§ 2º and 4º).

In the enforcement of a judgment, the debtor is notified to pay within 15 days. Without payment, the debt gains a 10% fine and 10% attorney's fees (Code of Civil Procedure, art. 523, § 1º). Once that period ends, another 15 days begin for the objection (impugnação) (art. 525). The defence covers limitation, overcharging, abusive interest, wrongful seizure and defective service.

Does the debt become time-barred if I live abroad?

The debt becomes time-barred within the same period as for someone living in Brazil. A claim for a liquid debt set out in a contract or written document is barred after 5 years (Civil Code, art. 206, § 5º, I). A claim on a negotiable instrument is barred after 3 years, unless a special law provides otherwise (art. 206, § 3º, VIII). Where the law sets no shorter period, the period is 10 years (art. 205).

The limitation period can be interrupted only once. The court order directing service interrupts it (Civil Code, art. 202, I), and so does any act by the debtor acknowledging the debt (art. 202, VI). A message admitting the debt or a written request to pay in instalments can restart the whole period.

Within the lawsuit there is also limitation during the proceedings (prescrição intercorrente). If neither the debtor nor assets are found, the judge suspends the enforcement for 1 year and then archives the case (Code of Civil Procedure, art. 921, §§ 1º and 2º). The period starts when the creditor learns of the first failed attempt (art. 921, § 4º) and is interrupted by service or seizure (art. 921, § 4º-A). The judge may recognise the time bar on his own motion after hearing the parties within 15 days (art. 921, § 5º).

Blacklisted in Brazil while living abroad: how long does it last?

The Consumer Protection Code forbids credit bureaus such as Serasa and SPC from keeping negative information for more than 5 years (art. 43, § 1º). Once the debt is time-barred, the bureaus cannot provide information that hinders new credit (art. 43, § 5º). Leaving the bureau's list does not erase the debt, and the creditor can still pursue it until it is time-barred.

To check Serasa from abroad, a Brazilian uses the bureau's website or app with his taxpayer number (CPF). The Central Bank's Registrato shows loans and financing registered under the CPF and works with a gov.br account. The consumer can demand the correction of wrong data, which the bureau must pass on within 5 business days (Consumer Protection Code, art. 43, § 3º).

Does a debt stop me from entering or leaving Brazil?

A civil debt does not stop anyone from travelling, and there is no automatic border block for debts with banks, credit cards or shops. The risk lies within the lawsuit. The Code of Civil Procedure allows the judge to adopt atypical coercive measures to force payment (art. 139, IV), and the seizure of a passport is one of them.

The Supreme Federal Court (STF) decided ADI 5941 on 9 February 2023 and upheld art. 139, IV, as constitutional. According to the STF, the measure cannot override fundamental rights, must be proportionate and has to be examined case by case. The judge must apply it in the way least burdensome to the debtor, and any abuse can be challenged on appeal.

Child or spousal support (pensão alimentícia) is the most serious exception. If the debtor neither pays nor justifies the failure within 3 days, the judge may order arrest for 1 to 3 months (Code of Civil Procedure, art. 528, § 3º). Arrest covers the 3 instalments before the enforcement and those falling due during the case (art. 528, § 7º). Anyone who owes support needs to settle the situation before travelling to Brazil.

What about debts with the Federal Revenue Service or income tax?

The collection of a tax credit is time-barred 5 years after the tax assessment becomes final (National Tax Code, art. 174). The tax authorities collect through a tax enforcement action (execução fiscal), which also reaches a debtor living abroad and allows bank accounts in Brazil to be frozen. That debt, on its own, does not stop anyone from entering or leaving the country either.

When is it worth negotiating?

Negotiating is worth it when the debt is not time-barred, the creditor has documents and the debtor has money or assets in Brazil. In the enforcement of an out-of-court instrument, the debtor may deposit 30% and pay the rest in up to 6 monthly instalments (Code of Civil Procedure, art. 916). The instalments carry inflation adjustment and interest of 1% a month. The request means waiving the motion against enforcement (art. 916, § 6º) and is not available in the enforcement of a judgment (art. 916, § 7º).

Before proposing a settlement, the lawyer checks the limitation period, the interest and the amount claimed. A written proposal acknowledging the debt can interrupt the limitation period (Civil Code, art. 202, VI), so the wording of the settlement needs care. Ignoring the lawsuit is the worst choice, because the defence period keeps running and the account freeze arrives without warning.

Step by step for someone living abroad with a debt in Brazil

1. Check the CPF on Serasa and on the Central Bank's Registrato and list each debt, creditor and date.
2. Search for lawsuits under the CPF in the courts of the state where you lived and of the creditor's head office.
3. Gather contracts, statements, payment receipts and conversations with the creditor.
4. Hire a lawyer through a digitally signed power of attorney, which is enough for court proceedings (Code of Civil Procedure, art. 105, § 1º), with no consulate involved.
5. Ask for an analysis of the limitation period, interest, amount claimed and validity of service.
6. File the motion against enforcement or the objection on time, or propose a calculated settlement.
7. Keep your contact details up to date with the lawyer so that each court notice gets a response.

Which mistakes does Rocha Advogados see repeated?

In the cases Rocha Advogados handles, the most common mistake is assuming that living abroad stops the lawsuit and letting the deadline run. The second is answering the creditor by message admitting the debt when it was close to becoming time-barred. The third is keeping savings in an ordinary account in Brazil without knowing what is exempt from seizure. The fourth is closing a verbal settlement, with no document and no check on the interest.

Frequently asked questions

I was served by public notice and I live abroad. What happens?

The case goes on, and the judge appoints a special guardian from the Public Defender's Office while there is no lawyer (Code of Civil Procedure, art. 72, II). The guardian defends without the debtor's documents or version of events. Anyone who discovers the lawsuit should appoint a lawyer and check whether the creditor knew the address abroad.

Do I need to go to Brazil or to the consulate to defend myself?

No. The firm's power of attorney signed digitally is valid for court proceedings (Code of Civil Procedure, art. 105, § 1º), and hearings can be held by video call. The consulate only comes in when the act requires a public deed, such as handing over a property in payment (Civil Code, art. 657).

Is having debts in Brazil an obstacle to applying for a visa for Portugal?

A civil debt is not a crime and does not appear on a criminal record certificate, the document usually requested for visas. The rules of each visa are set by the destination country and should be checked with its consulate. Rocha Advogados handles the debt in Brazil, not the visa application.

I live abroad and owe income tax. Can I enter and leave Brazil?

Yes, because a tax debt, on its own, does not block travel. The tax authorities can collect it through a tax enforcement action and freeze accounts in Brazil (National Tax Code, art. 174). Within the case, the judge may adopt a reasoned atypical measure (Code of Civil Procedure, art. 139, IV).

If I never go back to Brazil, does the debt disappear?

No. The debt may become time-barred, but the period is interrupted by the order directing service and by acknowledgment of the debt (Civil Code, art. 202). The blacklisting leaves the credit bureau after 5 years (Consumer Protection Code, art. 43, § 1º), and collection can continue until the time bar.

How long does the defence take?

It depends on the stage of the case, the type of debt and the defence available. The estimated timeline for your case is given in writing before we start.

This content is for information only and does not replace advice on your specific case. No outcome is guaranteed, in line with Brazilian Bar Provision 205/2021.

Rocha Advogados, a law firm in Goiânia (GO), Brazil, serving Brazilians living abroad. Av. D, 419, 4º andar, Setor Marista. Lawyers in charge: Rafael Bispo da Rocha, OAB/GO 33.675, and Ivenise Uchôa de Almeida Rocha, OAB/GO 59.087. Online service for Brazilians in any country and in person in Goiânia.