STJ Reinforces Need to Inform Debtors of Extrajudicial Auctions

The Superior Court of Justice (STJ) has once again reiterated that it is essential for the debtor to be duly informed of the date of the out-of-court auction of a property given as collateral in a fiduciary sale. This determination is crucial to avoid the sale being null and void, as established by the court's consolidated case law.

The decision was handed down by Justice Raul Araújo, of the STJ, in a specific case in which an auction held in 2021 for the sale of a property was annulled. The reason? The debtor, who had put up the property as a bank guarantee, was not personally notified of the date of the sale, even though it was claimed that he was aware of the auction because he had attached a printout of the website where the announcement was made.

For Justice Araújo, even if it were assumed that the debtor was aware of the sale of the property, he should still have been personally summoned to be aware of the date of the sale of the property, as an essential action for the validity of the auction sale.

As there was no proof of valid notification sent to the debtors about the dates of the out-of-court auctions, the decision of the court of origin was considered to be at odds with the STJ's settled case law, and had to be overturned. After all, the summons to inform the date of the auction is a fundamental right, and its denial can seriously compromise the integrity of the legal process.

If you are facing problems related to out-of-court auctions, loss of assets or legal disputes over debts, we are here to help. Our team of expert lawyers is prepared to analyze your situation, offer sound legal guidance and represent you at every stage of the process.

Don't let these issues jeopardize your rights. Count on us to guarantee your rights and protect your assets. Contact us today to schedule a FREE consultation and take the first step towards resolving your legal issues with confidence.

SOURCES:

Special Appeal 2.107.590