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Legal advice on enforcement proceedings

Everything about enforcement proceedings

You had problems with a counterparty who did not fulfill his part of the contract.

You negotiated with him, then wrote him letters and claims, but all to no avail. Then you had to go to court with a claim to recover money from your opponent (now debt, loss and / or prepayment). The court has satisfied your claim and the amounts due to you are recovered. Surprisingly your opponent filed an appeal. Then cassation.

In the end, you defended your rights in all judicial instances. The court decision entered into force. Your right to receive cash from your opponent is now indisputable and can no longer be challenged.

Say the end of a difficult journey and the money in your pocket? Not so simple and quick.

Your judicial sparring partner of the court decision may not be frightened. Then you will have to contact the bodies of the state executive service to enforce it.

So, you got a court decision on the recovery of funds. Upon its entry into force. You additionally receive the executive document from the judge: either an order (economic court) or a writ of execution (district court).

Then you carry it at your opponent’s location (place of residence) and submit it to the enforcement agencies for execution.

It is important to immediately check the executive document for errors, misprints and the presence of all the required information in it, as required by law. Otherwise, the enforcing authority will return it to you for correction.

Not later than three days after the submission of the executive document, the proceedings on forcing your opponent to order should be opened.

At the same time, your opponent is given a time limit for the voluntary execution of a court decision (up to seven days). Upon its expiration, the enforcement of your opponent’s order begins.

What should a coercive authority worker do first?

Identify the property of your opponent to the fullest extent. How does this happen?

The executive body has the right to formally apply to the state for instructions on property information.

How does he start? Of course, with the identification of funds located by your opponent in bank accounts! Who is the carrier of such valuable information about each? Of course, a popularly favorite tax (financial) service.

So, the performer received this information. Further, he lays an arrest on the funds in the provided tax accounts. This is done by issuing and sending to the banks (in which accounts are opened) a corresponding decree.

Bank actions in this situation are extremely simple:

 

  • there is money in the accounts - they must be written off completely (if there are not enough) or in part necessary to cover the amount claimed by the contractor;

  • no money - the bank must notify the contractor.

If there is money and written off, the bank transfers them to a special account opened by the coercive authority in the state treasury.

Then, from the specified account, the money should flow to your bank details specified in the executive document.

That executed the court decision, everything is so simple, you say. But this is the case if the opponent has turnovers and non-cash money in the accounts. And this is ideal.

But this money is not. What does the artist do next? To clear his conscience, he should properly attend to arrest and withdrawal of cash. This happens, for example, at the company's location at the ticket office.

But in practice, if the opponent does not have a bank transfer, then he will not have the cash either.

The debtor has no money, what is next?

Next, the contractor is obliged to identify the other movable and immovable property of the debtor. This happens in two ways: by obtaining information upon request or by arrival at the location (residence) of your opponent.

Answers to requests from the contractor can provide him with the following information about your opponent’s property:

Organ

Details

BTI

Justice Ministry (as holder of the relevant registries)

Real Estate

State Land Cadastre

Land

Police

Motor Transport

State Supervision of Labor Protection

Machines, machinery, non-motor vehicles

State Agricultural Inspectorate

Agricultural machinery

National Securities and Stock Market Commission

Securities

So, the request gave a positive result - the property of the debtor is in the registries of a state body. What's next? As in the case of the identified funds, the contractor should arrest this property, by issuing and sending a decision to the relevant authorities.

Further, this property must be physically identified, inspected and identified. If the location of the property is not known, the contractor can take measures to find him (provided that you advance his expenses on the search).

After that, the contractor must determine the person responsible for the safety of this property, and sign a custody agreement with him.

If, according to the government, the movable and immovable property is not registered with your opponent, the contractor must identify the property that is not subject to registration and state registration.

For this, he arrives at the place of registration of the company (residence of a citizen).

In the first case, the contractor is entitled to require accounting documents that keep records of the company's own property, which is on his balance sheet.

According to the results of the exit, the performer draws up documents about the inventory and arrest of the identified property. This property is also transferred to the custody of the person in charge.

After that, the arrest activities can be considered completed.

So, the property is revealed (stage 1) and arrested (stage 2).

In step 3, this property must be evaluated. This can happen in three ways:

  1. • If you agreed on this issue with your opponent, by agreement of the parties.
  2. • If the parties do not agree, the executor is based on current market prices.
  3. • If it is difficult to determine the cost, as well as in cases of valuation, for example, real estate and transport, according to an expert appraiser.

The final stage in the enforcement of a court decision is the sale of your opponent’s property. For most types of property, this happens through electronic trading.

The initial price of the property is the price determined in its assessment.

Such auctions can take place three times, with a gradual decrease in the starting price of unrealized property.

If these activities do not lead to success, the contractor will have to offer you to take this property to pay off the debt.

If you don’t need this property, it is returned to your opponent, and the executive document is returned to you.

In this case, it is considered that the executive service has done everything in its power to enforce the court’s decision.

And it will be possible to write off money from the accounts, or to realize the property qualitatively: both you are “on your own”, and your opponent is forced to order, and the performer received a bonus.

Do you doubt your ability?

Come to us! Our experts will accompany you at all stages of the trial, including the execution of the court decision!


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