IN_SOLVENS: Insolvency law in Portugal – a multidisciplinary analysis

(PTDC/DIR-OUT/2939/2020)

Abstract

In Portugal, mechanisms aimed at debtors in a difficult economic situation or in imminent insolvency (namely, the special proceedings for revitalization and the special proceedings for a payment agreement) have a marginal use when compared to insolvency proceedings and since 2016 there has been a sharp and steady decline in the number of special proceedings for revitalization issued. Furthermore, the average length of insolvency proceedings largely exceeds 2 years.

Given these elements, our research aims to address the following questions: (a) does the length of insolvency proceedings exceed what would be expected according to the law? (b) if so, what are the underlying causes? (c) how to explain the low use of pre-insolvency mechanisms? (d) what are the reasons for the steady decline in the number of special proceedings for revitalization issued in the last few years?

The project combines multiple perspectives as it includes legal, economic and sociological methods of analysis. This cross-cutting approach is intended to provide an overview of the causes that affect the length of insolvency proceedings and the use of pre-insolvency mechanisms. Such an analysis will be a major contribution to the prescriptive dimension of the project: the development of proposals aimed at promoting the use of pre-insolvency mechanisms (thus contributing to the recovery of viable debtors) and at reducing the length of insolvency proceedings, thereby mitigating its serious detrimental effects.

 

Institutions

Nova School of Law/CEDIS (Principal contractor)

ISCTE – Instituto Universitário de Lisboa/CIES (Participating institution)

 

Research team

Mariana Machado França Gouveia Sande Nogueira (Principal investigator – PI)

João Pedro Ramos de Almeida Pinto-Ferreira (Co-PI)

Guilherme Brandão Salazar Loureiro Gomes

Higina Maria Almeida Orvalho da Silva Castelo

Patrícia Andrea Rodrigues André

Susana Alexandra Lopes da Costa Santos

Teresa Cristina Nunes Violante Ferreira Nascimento

 

Duration

36 months (February 2021 to January 2024)

 

Funding

The project was awarded a € 196 963,13 funding by the Foundation for Science and Technology in the 2020 Call for SR&TD Projects in all Scientific Domains

 

Advisory board members

- Catarina Serra, juíza conselheira do Supremo Tribunal de Justiça;

Fernando Taínhas, juiz de direito no Juízo de Comércio de Lisboa;

Jorge Calvete, administrador judicial; 

- José Lebre de Freitas, professor universitário e advogado;

- Nuno Gundar da Cruz, advogado.