Debt payment – executive procedure
How many times have it happened that you lent someone money, sold goods, or performed a service without being able to collect it?
In this text, we will try to explain to you what are the most effective ways of collecting debts or cash receivables.
Brief note at the outset: Persons in enforcement proceedings are the executive creditor (the person to whom the debtor owes money) and the executor (the person who owes the executive creditor).
BASIS OF RECEIVABLES (DEBT)
In order to know to whom and how to contact for debt collection, it is first and foremost important to determine whether the document on the basis of which you can initiate enforcement proceedings is a credible or enforceable document.
If the basis of your claim is a bill of exchange and a check by a domestic or foreign person; excerpt from the Central Registry of Securities on the account balance of the legal holder of a bond or money market instrument (Treasury, Treasury and commercial papers) and the decision on their issue; account of a domestic or foreign person, with a delivery note or other written proof that the debtor has been informed of his obligation; an extract from the business books of the utilities or related services; calculation or extract from the business books for claiming a fee for public media service; a public document that creates an enforceable monetary liability; bank guarantee; Letter of Credit: a certified statement of the debtor authorizing the bank to transfer funds from its account to the account of the creditor; calculation of interest with proof of the basis of maturity and amount of receivables, temporary or completed situation on completed construction works; calculation of lawyer’s fees and expenses – it is a credible document.
Insofar as it is an enforceable court decision and a court settlement, which are for giving, doing, failing or suffering; an enforceable decision made in misdemeanor or administrative proceedings and an administrative settlement that declares a monetary obligation; excerpt from the Pledge Registry and excerpt from the Financial Leasing Registry; mortgage agreement and lien; the plan for reorganization in bankruptcy proceedings, the adoption of which was upheld by the court; a notarial document with the power of an executive document; agreement to settle the dispute through mediation; the decision of the Constitutional Court which upheld the request of the complainant for compensation for damages – this is an executive document.
Once you have determined which group the document you own belongs to, it is your turn to initiate the enforcement procedure, that is, the procedure of forced debt collection.
EXECUTIVE PROCEDURE (FORCED DEBT PAYMENT PROCEDURE)
The enforcement of debt collection or enforcement proceedings is initiated by filing a motion for enforcement with the competent court (and in the case of debts arising from the utility services provided, the enforcement proposal is submitted directly to the competent public executor).
Thereafter, the court issues an enforcement decision, which it submits to the debtor, who has the right to appeal against it within 8 days from the date of receipt of the said decision, but for the reasons listed in the applicable Law on enforcement and security (and when it comes to enforcement order issued on the basis of a credible document, the debtor may file an objection).
Further enforcement proceedings are conducted by the Public Bailiff.
HOW DOES DEBT MONEY BE PAID IN EXECUTIVE PROCEDURE?
The basic actions through which the payment of a monetary claim is made are: sale of real estate of the debtor (house, apartment, land, fields…), sale of movable property of the debtor (usually cars), joint sale of real estate and movable property, transfer of the monetary claim of the debtor (when the person who owes you has a claim on another person – you can take over that claim and thus settle, ie by collecting the debt that a third party has towards your debtor), transfer of earnings of the debtor, transfer of funds from the account of the debtor with the bank, transfer of funds from the savings or current account of the debtor, sale of the debtor’s financial instruments, sale of the debtor’s share in corporate entities, and transfer of the debtor’s claim to be presented with or deliver movable property or surrender the real estate and realization of other property rights of the debtor.
In order for enforcement to be effective, it is important that the enforcement proposal is formally and substantially orderly and contains as much information as possible about the property of the enforcement debtor.
WHICH THINGS CAN NEVER BE SUBJECT TO PERFORMANCE?
An executive creditor may not enforce his claim on the following items: clothing, footwear and other personal items, bedding, dishes, a piece of furniture required by the debtor and members of his household, a stove, fridge and stove for heating, food and heating required by the executive debtor and members of his household for three months, cash of the executive debtor who has a fixed monthly income up to a monthly amount exempted from enforcement, commensurate with the time until the next reception, orders, medals, war memorials and other decorations and recognitions, personal letters, manuscripts and other personal files and family photographs of the debtor, aids necessary for the life of a disabled person or other disabled person,pet.
Also, objects, weapons and equipment intended for the defense and security of the Republic of Serbia, as well as immovable or movable things used by state bodies to carry out tasks within their jurisdiction, may not be subject to execution.
COSTS OF EXECUTIVE PROCEDURE
Finally, we emphasize that the costs of the entire enforcement procedure are borne in advance by the executive creditor, but upon completion of the collection procedure, this amount is collected from the debtor and returned to the executive creditor.
If you have identified your issue in this text, please feel free to contact us via https://bozoviclegal.com/kontakt/.
Katarina S. Bozovic, attorney at law