Enforcement proceedings is the official process that enables a creditor to collect a debt that the debtor has failed to pay on time by using the power of the state. This process, Enforcement and Bankruptcy Law numbered 2004 carried out within the framework of. Upon the request of the creditor, the enforcement office takes action, a payment order is sent to the debtor, and the debtor's assets are seized when necessary.
Since enforcement proceedings have serious consequences for both the creditor and the debtor, it is of great importance that the process is carried out correctly.
Types of Enforcement Proceedings
Enforcement proceedings are generally divided into two main groups:
1. Enforcement Proceedings Without Judgement
This is a type of enforcement proceeding initiated by the creditor without a court judgment. It is the most commonly used method.
- Enforcement via General Liquidation (Ordinary Enforcement): It is used in transactions without a promissory note or in simple debt relationships.
- Execution Proceedings Specific to Bills of Exchange It is based on negotiable instruments such as cheques, promissory notes and bills of exchange. It has shorter time limits and special channels of appeal.
- Enforcement of Pledged Receivables: If the receivable is secured by a pledge, recourse is made to the sale of the pledged property.
Enforcement Proceeding with a Court Judgement
It is based on a court decision or a document in the nature of a writ. Maintenance, compensation and eviction orders fall within this scope. The enforcement office, to the debtor enforcement order sends.
Process of Enforcement Proceedings Without a Judgement
Enforcement proceedings without a court judgement are the most common method. The process works as follows:
- Enforcement Request: The creditor applies to the enforcement office and makes a follow-up request containing the amount of the debt and the party information.
- Payment Order: The enforcement office sends a payment order to the debtor. This order specifies the deadline for paying the debt or raising an objection.
- Appeal: From the service of the payment order, the debtor 7 days can object to the debt, signature or authority within 5 days in bills of exchange.
- Attachment If the debtor does not object within the due period or if the objection is rejected, the attachment stage is proceeded to upon the request of the creditor. The movable/immovable property, salary or bank accounts of the debtor can be attached.
- Sales: Nowadays, seized goods are mostly e-sales (electronic tender) it is sold by means of. The proceeds from the sale are first set off against expenses and charges, and then against the creditor's debt.
Rights of the Debtor and Ways of Appeal
The debtor may defend themselves against the enforcement proceedings initiated against them through various legal remedies:
- Objection to Debt: They may claim that the debt does not exist, has been paid, or was calculated incorrectly.
- Objection to Signature: He may claim that the signature on the promissory note does not belong to him. It must be stated clearly.
- Objection to Jurisdiction: He may claim that the proceedings were initiated in the wrong place. However, he must also indicate the competent enforcement office.
- Action for a Negative Declaratory Judgment: It can be filed to prove that the debt does not exist if the objection period has been missed.
- Late Objection: If an objection cannot be made in due time due to a valid excuse, an application can be made to the enforcement court within 3 days from the removal of the obstacle.
Making the objection halts the enforcement proceedings. In this case, the creditor, lawsuit for the annulment of the objection or request for the removal of the objection She can apply to her method.
Seizure and Sale Process
If the debt is not paid or objected to, the execution office shall attach the debtor's assets.
- Assets Liable to Attachment: Movable property (vehicles, electronic goods), immovable property (houses, land, business premises), salary (at the rate of 1/4), bank accounts.
- Goods That Cannot Be Seized: The debtor's essential items for living (bed, kitchenware, items for personal use), tools and equipment necessary for the practice of their profession, certain social benefits.
- Sales Process: Sale of seized goods it is carried out by the enforcement office through auction or e-sale. A sale announcement is published, and participation in the auction is secured by depositing a guarantee.
- Distribution of Income: First, enforcement fees and expenses are paid, followed by the creditors' claims. If there is any remaining amount, it is refunded to the debtor.
Duration and Costs of Enforcement Proceedings
- In files with no objections: in 1-2 months It may be concluded.
- If there is an appeal or lawsuit: 6-12 months It may take time.
- The process along with the attachment and sale stages It can exceed 1 year.
Expenses include: service of process, attachment and sale costs, expert fees, and legal fees. In addition, the type of interest (statutory, commercial, bill of exchange interest) must be correctly claimed.
Enforcement Proceedings Process
Frequently Asked Questions (FAQ)
You can find the answers to the most frequently asked questions about the enforcement proceedings process here. If you cannot find the answer you are looking for, for detailed information and support you can get in touch with us.
What is the time limit to object to enforcement proceedings?
In enforcement without a court judgement it is 7 days, and in bills of exchange it is 5 days.
If an objection is made, does the enforcement proceeding stop completely?
General enforcement proceedings stop; the creditor must file a lawsuit. In proceedings concerning bills of exchange, a separate “interim suspension” decision from the court is required for the sale to be halted.
Can my salary be fully attached?
No. Only 1 in 4 It can be seized. This rate may be higher in maintenance debts.
Which goods cannot be seized?
Essential household goods, tools necessary for the practice of a profession, certain social benefits.
What is an out-of-time appeal?
If the debtor has been unable to object in due time without fault, they may apply to the enforcement court within 3 days from the removal of the impediment.
What is a negative declaratory action used for?
It proves that the debt does not exist. The enforcement proceeding is cancelled, and the amounts paid can be recovered.
What is the difference between the cancellation of an objection and the removal of an objection?
- Lifting: Claims backed by documents are heard in the enforcement court.
- Cancelled: It is filed as a debt claim in the General Court.
Conclusion: How to Start Enforcement Proceedings? The Role of the Enforcement Lawyer
Enforcement proceedings begin with the creditor applying to the enforcement office to collect their unpaid debt through legal means. It is a process where deadlines are very short and the consequences are quite severe.
Initiating enforcement proceedings with the right strategy for the creditor is the most effective way to secure their receivables, and an enforcement lawyer ensures that the process is conducted with the correct documents and that potential objections are managed.
For the debtor, enforcement proceedings begin with the service of the payment order; at this stage, the debtor may pay the debt, request restructuring, or object to the proceedings if there are legitimate grounds. In this situation, an enforcement lawyer plays a critical role in protecting the debtor's rights, managing the objection process against unjust or erroneous actions, and developing a defence against potential attachment procedures.
Azel Law and Consultancy We meticulously protect our clients' rights in enforcement proceedings, seizure and objection processes. You can contact us for more information or professional support.
