Methods of debt recovery – 6. Enforcement proceedings
Debt recovery must result in the creditor receiving all sums due from the debtors.
In this regard, the debt recovery process does not end with obtaining a favorable court decision but concludes with the enforcement, whether voluntary or forced, of the sums in question.
If, after obtaining an enforceable court decision, the debtor voluntarily settles the debt, they avoid the expenses and fees of the enforcement phase.
Enforcement proceedings begin with the appointment of a judicial executor through a request for enforcement, subject to court approval. Upon approval, the acts and forms of enforcement can commence.
The creditor may pursue the debtor’s movable assets, whether held by them or others, identifying the movable assets on which enforcement is desired. The judicial executor proceeds to seize the debtor’s seizable movable assets for their realization, even if held by a third party. If within 15 days of seizure no payment is made, including all enforcement costs and expenses, the judicial executor proceeds to sell the seized assets through public auction, direct sale, or amicable sale (with the creditor’s agreement).
Through chattel pursuit, sums of money, securities, or other incorporeal movable assets owed by the debtor or held on their behalf by a third party can be realized.
The creditor may also pursue immovable property, the right to usufruct over immovable property (the right to use the property of another person, to collect its fruits, just like an owner, but with the obligation to preserve its substance), the right to surface over immovable property, conditionally (the right to have or to build a structure on another’s land, where the surface right holder acquires a right of use), servitude rights (associated with the dominant estate to which it benefits), accessory goods, fruits, and revenues of the property. If within 15 days of the communication of the enforcement approval, the debtor fails to pay the debt, the judicial executor proceeds to sell the seized assets through public auction, direct sale, or amicable sale (in this case with the creditor’s agreement).
The final stage of enforcement is the release and distribution of the sums obtained from enforcement. If only one creditor participated in the enforcement, the release of the sums is discussed; if multiple creditors participated, the sums are distributed proportionally to each creditor’s claim.
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Vladimir Catargiu – Attorney at Law
