Are you considering starting enforcement proceedings to collect your receivables? In this article, I will explain step by step the stages of enforcement proceedings and what you need to do at each stage.
Step 1: Application to the Authorized Enforcement Office
First, you need to apply to the authorized enforcement office to collect your receivables. The authorized enforcement office is the enforcement office closest to your debt’s residence or workplace. The documents required for the application are as follows:
Petition for Enforcement Request: In this petition, you must specify the amount, type and basis of your receivables (e.g., invoice, promissory note).
Documents Proving Your Receivables: You must attach documents proving your receivables such as invoices, promissory notes, and bank statements to the petition.
Duty Fee: You must pay a duty fee to the enforcement office during the application.
Step 2: Payment Order
After your application and documents are reviewed by the enforcement office, a payment order is sent to the debtor. A payment order is a document that orders the debtor to pay your receivables within the specified period. The debtor can pay the debt or object to the enforcement within 7 days from the notification of the payment order.
Step 3: Finalization of the Enforcement
If the debtor does not object or pay the debt within 7 days, the enforcement is finalized. If the enforcement is finalized, the creditor can initiate a seizure process to collect the receivable.
Step 4: Seizure Process
A seizure process is the process of seizing the debtor’s assets. The assets that can be seized are as follows:
Movable assets: Household goods, cars, motorcycles, etc.
Immovable properties: Land, houses, shops, etc.
Bank deposits
Receivables
The seizure process is carried out by the enforcement officer. The enforcement officer places a seizure note on the seized assets and prepares a seizure report for the debtor.
Step 5: Sale and Distribution of Money
The seized assets are put up for sale by the enforcement officer. The proceeds from the sale are distributed to the creditor and any other creditors.
Enforcement proceedings can be a complex process. Therefore, it is recommended that you consult an attorney to protect your rights and properly conduct legal proceedings.