Replacing a Court Cash Deposit with a Letter of Guarantee (Carta Fiança)
How to swap a cash court deposit for a judicial letter of guarantee (carta fiança) issued by ERGO, freeing the tied-up capital back into your company's working capital — subject to a request in the case file and the judge's acceptance.
Yes, a company can request that a cash court deposit be replaced by a judicial letter of guarantee (carta fiança) issued by ERGO. The swap is not automatic: it depends on a request in the case file and on the judge's acceptance. Once the guarantee is accepted, the deposited capital can be released back into working capital.
Key facts
- How it works: ERGO, as guarantor, issues the letter of guarantee in favor of the court, with a 30% add-on over the guaranteed amount, so the company can request the substitution of the deposited cash.
- Frees up cash: If the judge accepts the guarantee, the cash already deposited can be withdrawn and return to the company's working capital, replaced by the letter of guarantee.
- No bank credit-line impact: ERGO's letter of guarantee is a personal guarantee issued by a guarantor, not bank credit: it does not tie up the company's bank credit line.
- Broad scope: Can be offered in tax enforcement, civil enforcement, and labor court/appeal deposits.
- How it is done: Requires a substitution petition in the case file and judicial acceptance (the judge is not obliged to accept).
Keeping the cash deposit vs Replacing it with a letter of guarantee
| Criterion | Keep the cash deposit | Replace with a letter of guarantee |
|---|---|---|
| Capital tied up | The full amount is locked in the case file | Capital freed back into cash, if the judge accepts |
| Consumes bank credit line | No bank use, but cash is frozen | No — it is a personal guarantee, not bank credit |
| Yield | Earns a court/savings rate, below inflation | The capital works again in the operation |
| Judicial acceptance | Standard, no ruling needed | Depends on a request in the case file and the judge's acceptance |
| Cost | Opportunity cost of idle capital | Quote-based |
Can the court deposit be replaced?
Yes, it can be requested. A cash court deposit can be replaced by a judicial letter of guarantee — a personal guarantee document in which ERGO, as guarantor, undertakes before the court to pay the amount in dispute up to the guaranteed limit. The purpose is the same as the deposit: to ensure the claim will be secured at the end of the case.
The key practical advantage is freeing capital. While deposited cash stays locked in the case file, often yielding below inflation, replacing it with a letter of guarantee returns that capital to the company's cash — which resumes financing the operation — without consuming any bank credit line, since ERGO's letter of guarantee is not bank credit.
The substitution is not automatic: it depends on a petition in the case file and on the acceptance of the judge, who assesses the guarantee offered in the specific case.
The 30% add-on and the judge's review
When a guarantee is offered in place of cash, procedural rules usually require the guaranteed value to be increased by 30% over the amount in dispute. This add-on covers interest, monetary adjustment, and possible case costs.
ERGO structures the letter of guarantee already with this 30% add-on. The court remains protected: if the guaranteed company loses and does not pay, ERGO, as guarantor, pays the beneficiary (the creditor) up to the guaranteed limit.
It is the judge who decides whether the letter of guarantee replaces the deposit, after hearing the other party where appropriate. That is why the guarantee is issued with the exact case details (number, amount, beneficiary, and term), so the substitution request reaches the case file complete.
Step by step of the substitution
1) Quote and issuance: the company (the principal) requests the judicial letter of guarantee from ERGO, providing the case number, the amount in dispute, and the beneficiary (the court/creditor). After analysis, the letter of guarantee is issued digitally, with an ICP-Brasil certificate, already with the 30% add-on over the secured amount.
2) Substitution petition: the lawyer files a request in the case to replace the cash attachment/deposit with the letter of guarantee, attaching the guarantee and asking for the release of the deposited amount.
3) Acceptance and release: the judge, after hearing the other party where appropriate, rules on the guarantee. If accepted, the judge authorizes the release of the deposited cash — which returns to the company's treasury — and the enforcement is then secured by ERGO's letter of guarantee for the duration of the case.
How much it costs and when it pays off
The cost of a judicial letter of guarantee is the guarantee fee, always set by quote, after analysis: the company’s risk, the guaranteed amount, the term, and the modality are what weigh. Get your quote online through the app or on WhatsApp +55 11 93444-0099.
The math is simple: compare the guarantee fee with the opportunity cost of the capital idle in the case file. If the frozen cash would earn more invested in the operation (or pay off more expensive debt) than the letter of guarantee fee, the substitution pays off — which is true in the vast majority of cases, especially for large amounts and long-running proceedings.
Beyond the direct financial gain, there is the cash-flow relief: capital that was frozen for years starts circulating again. For growing companies or those needing working capital, that release is usually worth far more than the cost of the guarantee.
Frequently asked questions
Is the judge obliged to accept the letter of guarantee?
No. Replacing cash with a letter of guarantee plus a 30% add-on depends on a request in the case file and on the acceptance of the judge, who assesses the guarantee in the specific case. ERGO issues the letter of guarantee with the exact case details so the request is complete.
Does it work for tax enforcement?
Yes, the letter of guarantee can be offered in tax enforcement to secure the debt. Acceptance depends on the judge and, where applicable, on the position of the creditor Treasury. It can also be offered in civil and labor enforcement.
Do I get back the money I already deposited?
That is precisely the goal of the substitution: if the court accepts the letter of guarantee, the cash already deposited can be released and return to the company's treasury, with the enforcement secured by ERGO until the case ends.
Is the 30% add-on really required?
As a rule, yes: a guarantee offered in place of cash is usually presented for 30% more than the secured amount. This add-on covers interest and adjustment, and ERGO's letter of guarantee is already structured with it.
How much does a judicial letter of guarantee cost?
The fee is set by quote, after analysis, based on risk, guaranteed amount, term, and modality. It pays off when the fee is lower than the cost of keeping the capital tied up. Get your quote online through the app or on WhatsApp +55 11 93444-0099.
How long does it take to issue the letter of guarantee?
ERGO offers fast issuance once the documentation is complete. The total time until the money is released also depends on filing the petition and the judge's ruling in the case.
Want to free the money locked in your court deposit?
ERGO issues judicial letters of guarantee (carta fiança, with the 30% add-on) so the company can request the replacement of cash deposits in tax, civil, and labor enforcement — returning the capital to your treasury, if the judge accepts.