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Execution Processes

An enforcement proceeding is the legal process through which a due receivable is collected with the power of the state. The creditor files a request with the enforcement office, which serves a payment order on the debtor. If the debtor neither pays nor objects within the statutory period, the proceeding becomes final and moves to attachment. The request must clearly state the basis of the claim (check, promissory note, invoice, contract) and its amount.

It is a special, faster procedure provided in the Enforcement and Bankruptcy Law for claims based on negotiable instruments such as checks, bonds and bills of exchange. It differs from the general procedure in two important ways: the period for objection is shorter and the objection is filed directly with the enforcement court; moreover, an objection does not, as a rule, automatically stay the proceeding. For a creditor holding a valid check or note, this is usually the most effective route.

A formal notice officially informs the debtor that the debt must be paid within a given period and is usually served through a notary. For claims based on checks and notes, sending a notice is not, as a rule, mandatory before starting enforcement. It is nevertheless often useful: it documents default, keeps the door open for settlement and creates evidence for a possible lawsuit.

In the general attachment procedure, a timely objection by the debtor stays the proceeding. The creditor then applies to court for annulment or removal of the objection; if granted, the proceeding continues from where it stopped. In proceedings for negotiable instruments, the objection is filed with the enforcement court and does not, as a rule, automatically stay the proceeding. Which route applies depends on the document the claim is based on.

It is compensation awarded when the debtor objects without justification and thereby forces the creditor to file a lawsuit. It is claimed in the action for annulment of objection and, where the objection is found unjustified, is set at no less than a defined proportion of the awarded claim. It must be expressly requested in the lawsuit; it is not awarded automatically.

The duration depends on the document underlying the claim, on whether the debtor objects, and on whether there are attachable assets. An unopposed proceeding based on a negotiable instrument may conclude within a few months, while files that enter objection and litigation can extend over years. A file is closed when the debt is collected in full, when the parties settle outside the proceeding, or when the creditor waives the proceeding.

No. Postponement of bankruptcy was closed to new applications in 2016 and removed from the Enforcement and Bankruptcy Law entirely in 2018 by Law No. 7101. The protection route available to a company in financial distress today is composition with creditors (konkordato), which is conducted under court supervision, passes through provisional and definitive moratorium stages, and prevents new enforcement proceedings against the debtor during the moratorium. Applications filed as a request for postponement of bankruptcy are not accepted.