Atlas · Governance
Business activity cessation for more than 2 years prevents bankruptcy petition under art. 94, I
AnswerBankruptcy under art. 94, I, cannot be decreed if business activities ceased more than 2 years before the petition, as proven by a document from the Public Business Registry.
Reviewed on 2026-10-02 · next review 2027-04-02
Data
| Who | Criterion | Consequence | Source | Data date |
|---|---|---|---|---|
| Debtor | Business activities ceased more than 2 years before the bankruptcy petition | Prevention of bankruptcy decree under art. 94, I | Law 11.101/2005, art. 96, VIII | 09/02/2005 |
Data consulted on 02/10/2026.
Basis
- Law No. 11.101/2005 (Planalto, in Portuguese): Art. 96, VIII, states that bankruptcy requested under art. 94, I, will not be decreed if the cessation of business activities occurred more than 2 years before the petition, as proven by a document from the Public Business Registry.
How it applies
Cessation of business activities for more than 2 years before the bankruptcy petition prevents its decree under art. 94, I, provided it is proven by a valid document from the Public Business Registry. This evidence prevails unless there is proof of subsequent activity after the registered act.
Limits
- Proof of cessation of activities must be documented in the Public Business Registry but can be contested by evidence of activity after the registration.
- The restriction applies only to bankruptcy petitions based on art. 94, I (bankruptcy for non-payment of protested title or non-payment of a liquid obligation).
- This document does not cover other requirements or causes of bankruptcy provided in other subsections of art. 94.
- Changes made after Law 11.101/2005 must be verified directly from the official Planalto source.