What to do when there is billing attachment subpoena above the cash generation of the business?

In view of the increase in the number of invoices with the advent of the New Code of Civil Procedure, effective from April this year, the companies subpoenaed in this court decision have one more challenge: how to act when there is subpoena of garnishment percentage of billing in value higher than the cash generation of the business?

The answer is: by presenting, through its attorney, an Economic Opinion that demonstrates the economic and financial situation experienced, the future prospects of cash generation and existing commitments, proving that the fixed percentage makes unfeasible the exercise of business activity.

The exposure must be sufficiently informed by the historical accounting records and represent the actual moment experienced, with future prospects based on already consolidated market premises.

When we are called upon to judge cases of this nature judicially, we demand minimally the well-founded projections of outcome, turnover and cash – it is the basics.

We recommend that the exposure is not dissociated from the company’s financial planning – it should not be a simulation just for this purpose.

Explanations based on mere assumptions, in addition to not convincing, will not give the foundation necessary to fix the percentage of attachment, putting at risk the existence of the company.

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