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NEWS

Are the days of fruitless enforcement procedures numbered?


30/12/2019

The Chamber of Deputies is currently discussing two bills to amend the Enforcement Code, the purpose of which is to lower the number of enforcement applications and concurrently to relieve bailiffs of fruitless enforcement procedures that drag on for years.

If passed, the bills will introduce, among other things, a flat-rate reimbursement of cash expenses and an advance payment for the cost of the enforcement procedure which the bailiff will receive from the beneficiary. This requirement would make the beneficiary consider whether the debtor has any assets because if the debt is not collected, the beneficiary will not recover the cost.

Moreover, if, after an enforcement application is filed, the bailiff finds out in the register of ongoing enforcement procedures that the debtor is subject to any other enforcement procedure, the bailiff will refer the application to the bailiff in charge of that procedure. Assigning enforcement procedures against one and the same debtor to a single bailiff aims to reduce their costs. If an enforcement procedure fails, within 3 years, to recover at least a portion of the debt (that would at least cover the cost of the enforcement procedure) and identify and secure any seizable assets of the debtor, the bailiff will stop the procedure even without the beneficiary’s proposal and consent. If the debt is not at least partially recovered despite seizable assets having been identified or secured, the enforcement procedure will end after 9 years. This part of the amendment is designed to prevent a fruitless accumulation of procedures.

The proposals also include introducing regional and local jurisdiction of bailiffs. Both amendments have passed the first reading and have been referred to the committees for discussion.