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Writer's pictureEdson Ferreira

Judicial Precatory: Legal Procedures, Social Impacts, and Future Perspectives




Judicial precatories are fundamental instruments in Brazilian law to ensure the payment of public debts resulting from judicial decisions against public entities. This article aims to explore in detail the concept of precatory, its legal procedures, the social and economic impacts on public entities, and discuss future perspectives and measures to improve the management of these credits, avoiding common scams and frauds in this specific context.


What is a Precatory?


A precatory is a judicial order issued for public entities such as the Union, States, Municipalities, and Autonomous Entities to pay debts resulting from definitive judicial condemnations. It is recognized as a judicial enforcement title, granting the creditor a clear and certain right to the credit determined by the judicial decision.


Generation of Precatory


Precatories are generated after judicial decisions that condemn the public entity to pay a specific amount. They originate from various causes such as expropriations, tax executions, moral damages, and other judicial disputes, reflecting the need to comply with judicial decisions against the government.


Origin and Nature of Precatory


The origin of precatories is rooted in the Federal Constitution, especially in Article 100, which establishes the rules for the payment of public debts. Its legal nature ensures legal certainty to the creditor, based on the guarantee of compliance with judicial decisions.


Timeline for Receipt


The timeline for receiving precatories can be prolonged, depending on the financial availability of the debtor public entity and the chronological order of presentation of precatories. This can result in long waits for creditors, which has been the subject of legislative reforms and discussions to improve the speed of payments.


Legal Procedure and Steps


  1. Request for Precatory: The creditor must request from the court responsible for the judicial decision the payment of the precatory, presenting all necessary documents proving the right to the credit.

  2. Inclusion in Budget: After the request, the precatory must be included in the budget of the debtor public entity, respecting the chronological order and priorities established by the Constitution and local regulations.

  3. Payment: Once included in the budget, the precatory is paid according to the financial availability of the public entity and following the chronological order of presentation, thus ensuring equity in the treatment of creditors.


Caution to Avoid Scams and Frauds


It is essential for creditors to be vigilant to avoid common scams and frauds involving precatories. This includes verifying the legitimacy of intermediaries offering services related to precatories, as well as seeking specialized legal guidance to ensure that all steps comply with current legislation.


Homologation with the Federal Revenue Service


For cases of buying and selling precatories, it is necessary to proceed with homologation with the Federal Revenue Service, ensuring the fiscal regularity of the operation. This process ensures that both the seller and the buyer comply with applicable tax norms.


Alimentary Precatories


Alimentary precatories have priority of payment over others, ensuring that credits related to food and other essential needs are treated with priority by debtor public entities.


Precatory Auctions


Precatory auctions are regulated mechanisms where creditors can sell their credits to interested third parties. These auctions are important to provide liquidity to creditors who need financial resources more immediately, following specific regulations to ensure legality and transparency of transactions.


Economic and Social Impacts of Precatories

Precatories have significant impacts both economically and socially:


Economic Impact: Precatory payments can represent a considerable financial challenge for public entities, especially in periods of economic crisis, requiring strategic financial planning to ensure compliance with judicial obligations without compromising other essential budget areas.


Social Impact: Compliance with precatories is vital to ensure social justice, providing creditors with resources that are often crucial for their basic needs and for improving their living conditions.


Monitoring and Control Mechanisms


Transparency in Payments: It is essential to promote transparency in precatory payment processes, disclosing detailed information about payment orders, the amounts involved, and the criteria adopted for the inclusion and prioritization of credits.


Control Bodies: External control bodies, such as Courts of Auditors, play a fundamental role in overseeing the management of precatories, ensuring that procedures comply with legal and regulatory norms, as well as overseeing the correct use of public resources.


Future Perspectives and Legislative Reforms

Future perspectives for the precatory system include proposals for legislative reform and enhancements to:


Payment Efficiency: Implement measures aimed at improving the management and speed of precatory payments, such as special payment regimes and modernization of control and monitoring systems.


Transparency and Accountability: Reinforce transparency and accountability in precatory management processes, adopting technologies and practices that ensure greater access to information and participation of civil society in social control.


Conclusion


Judicial precatories play a crucial role in Brazilian legal order by ensuring compliance with judicial decisions against the government. However, their efficient management and observance of creditors' rights are continuous challenges that require constant improvement and adaptation of the legal system. The analysis of economic and social impacts, along with reform perspectives, contributes to a more comprehensive and critical understanding of the precatory issue in the national context.


This article provides an integrated and informed view of the topic, offering insights not only on legal and procedural aspects but also on the social and economic implications of precatories, as well as the necessary measures to strengthen the system and promote more efficient and transparent public administration.

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