A study by Boa Vista, released on July 8, showed that bankruptcy filings increased 28.9% in June compared to the previous month, and that judicial reorganization filings increased 82.2%. The survey was based on information collected by the Central Credit Protection Service (SCPC) in forums, bankruptcy courts, Official and Justice Gazette.

In the case of bankruptcies decreed within the same period, there was an increase of 93%, while the judicial reorganizations accepted doubled, with an increase of 103.3%.

The new coronavirus crisis directly impacted those numbers. When compared to the same period last year, bankruptcy filings rose 87.1%; the decrees, 71.3%; reorganization filings rose 44.6%; the decrees, 123.4%.

Also according to the Boa Vista study, small businesses were the most affected. On an average of 12 months, these companies were responsible for 93.4% of bankruptcy filings; 95.8% of allowances; 94.2% of reorganization filings; and 94.3% of the decrees. For comparison, only 1.3% of large companies filed for bankruptcy and 1.1% of them filed for reorganization.

According to Raphael Zaroni, “micro, small and medium-sized companies are affected by having less access to credit and managerial resources used by more structured companies, which often include legal measures, judicial or not, that bring enough breath to overcome these moments of crisis.”