Enforcement law, is a branch of law that regulates the legal processes enabling creditors to collect their debts from debtors through state power. This field of law encompasses the legal avenues creditors can pursue in the event of non-payment of a debt, including enforcement proceedings, bankruptcy, and concordatum processes. Regulated under the Enforcement and Bankruptcy Law, enforcement law ensures the collection of commercial and individual debts and resolves the creditor-debtor relationships.
Key Topics in Enforcement Law
- Enforcement Proceedings:
Enforcement proceedings are legal processes that creditors can initiate when a debtor fails to pay their debt. Enforcement proceedings are divided into non-judicial and judicial enforcement proceedings. Non-judicial enforcement is initiated without a court decision, while judicial enforcement is based on a court ruling. After the enforcement process is initiated, a payment order is sent to the debtor, demanding payment within a specified period. If the debt remains unpaid, seizure (attachment) procedures are initiated.
- Seizure Procedures
Seizure involves confiscating the debtor’s assets to collect the debt. Seizure can be applied to the debtor’s movable and immovable properties, bank accounts, salary, or receivables. Seizure procedures can be halted if the debt is paid, and the seized assets may be sold to cover the debt amount.
- Bankruptcy
Bankruptcy is the declaration by a court that a debtor is unable to pay their debts. Bankruptcy typically pertains to commercial enterprises and legal entities, initiating a liquidation process to protect the creditors' rights. During the bankruptcy process, the debtor’s assets are identified and distributed fairly among the creditors.
- Concordatum
A concordatum is an agreement between a debtor and their creditors aimed at restructuring the debtor’s financial situation and debts. The concordatum allows the debtor to avoid bankruptcy and continue their economic activities. During the concordatum process, a court-appointed commissioner oversees the debtor’s financial situation and ensures compliance with the concordatum terms.
Benefits of Enforcement Law Consultancy
- Enforcement Proceedings: Ensures that creditors can quickly and effectively collect their debts by properly managing legal processes.
- Bankruptcy and Liquidation Procedures: Manages the bankruptcy process of commercial enterprises, ensures the liquidation of debts, and protects the rights of creditors.
- Concordatum Applications: Provides services for filing concordatum applications and monitoring the processes to help debtors recover their financial standing.
- Seizure Procedures: Manages the seizure procedures applied to the debtor’s assets for debt collection, ensuring compliance with legal standards.
Enforcement law is critical in protecting the rights of parties in creditor-debtor relationships and resolving disputes. Having these processes managed by an expert legal advisor helps prevent loss of rights and contributes to the proper management of the processes.