Brazil STJ: Labor Creditor Can File Civil Insolvency Without Waiving Execution

Brazil's Superior Court of Justice (STJ) ruled that a labor creditor has standing to file for civil insolvency against a debtor, provided the creditor waives preferential credit rights, and that prior withdrawal of an ongoing individual labor execution is not required. This clarifies procedural law, potentially easing labor creditors' access to insolvency proceedings. The decision is a legal precedent with implications for Brazilian insolvency and labor enforcement practice.