Participation in seizure is a compulsory enforcement institution that allows the first seizure of the property of the debtor, who has more than one creditor and whose assets do not cover all his debts, by one of the creditors, and which later seizes the same property and ensures that other creditors who meet the conditions also participate and receive a share of the sale price.
The conditions for participation in the lien are as follows:
• The debtor must have more than one creditor and his assets must not cover all his debts.
• The first lien must have been placed.
• The receivable of the creditor requesting participation must be subject to prosecution.
• The creditor requesting participation must have priority or the same priority over the creditor making the first lien.
Participation in seizure:
• The creditor requesting participation requests participation in the seizure upon the first seizure report.
• If the enforcement director understands that the price of the seized goods is sufficient to cover the receivables of all creditors, he writes only the participation in the seizure under the first seizure report.
• If the number of creditors participating in the seizure is more than one, the sale price is distributed according to the order of creditors' receivables.
Some important points about participation in foreclosure:
• Participation in foreclosure is divided into two: with follow-up (ordinary) and without follow-up (non-accelerated). In a follow-up participation, the creditor requesting participation must have priority or have the same priority over the creditor who placed the first lien. In non-prosecuted participation, the creditor who requests participation must have priority over the creditor who made the first seizure, in order to participate in the seizure without the need for a follow-up ceremony.
• The debtor's spouse and children and those for whom he is a guardian or trustee can participate in the seizure at the same level until the amount of the goods sold upon the first seizure is entered into the cashier's office, without the need for a follow-up ceremony for receivables arising from marriage, custody or guardianship.
• Participation in seizure is an opportunity that allows creditors to collect their receivables more easily and quickly.
Legal Notice: This blog post is for informational purposes only and does not constitute legal advice. It is recommended that you consult an attorney before taking any legal action.