1. What is forced execution?
If a debtor does not willingly fulfil the obligation he/she has towards his/her creditor, the creditor has the possibility to start the forced execution against the debtor, by addressing a bailiff for this purpose.
For the bailiff to be competent to enforce the writ of execution, it is necessary that the residence/office of the debtor is in the district of the same court of appeal in which the office of the notified bailiff is located.
Thus, the Parties in a forced execution file are:
– the creditor who is natural or legal person to whom amounts of money or various services are owed and
– the debtor who is natural or legal person who owes amounts of money or various services.
The forced execution procedure starts based on a forced execution claim filed by the creditor against the debtor and submitted to the office of bailiff, together with the writ of execution in original and a stamp duty in amount of 20 lei.
- Based on which document does the forced execution begin?
The forced execution can start only based on a writ of execution which the creditor holds against the debtor.
Writs of execution can be: a court judgement pronounced by a court of law, which bears the final mention, credit agreement, cheque, bill of exchange, promissory note, loan agreements, lease agreements etc.
- What steps does the bailiff take after the recording of forced execution claim?
The bailiff has the obligation that within maximum 3 days he/she requests the court of law to order the approval of execution. The execution court is the district court in the district of which the office of the bailiff who does the execution is located, unless the approval of forced execution has as object the forced execution of a real estate. In this case, the competent court of law is the court of law in the radius of which the building is located.
After the introduction of the claim for approval of forced execution, the execution court must settle it within maximum 7 days from recording, by resolution given in council room, without the summoning of the Parties. The pronouncement can be postponed for maximum 48 hours, and the motivation of resolution is made within maximum 7 days from pronouncement.
After the approval of forced execution, the bailiff will inform the debtor that the forced execution has started against him/her and warns him/her to pay the debt.
Also, the bailiff will perform the following checks:
– at the Division of Records of Persons to learn the correct identification data of the debtor, at all credit institutions by which he/she requests to be communicated whether the debtor is listed in their records with bank accounts;
– at the Divisions of Taxes and Local Duties, to learn whether the debtor is listed with taxable assets;
– at the Territorial Work Inspectorate, the National Agency for Occupation of Workforce and the National Health Insurance House, the Pension Houses, to learn whether the debtor is listed with a job or with pension file.
- What are the forced execution forms which can be made for the recovery of receivable?
The forms of forced execution are: seizure of movable assets, seizure of immovable assets and garnishment.
In the lines below we will illustrate an example for each of the forced execution forms.
Seizure of movable assets: e.g. the car of debtor which can be valorised for the recovery of receivable.
Garnishment: it can be placed on the salary incomes, pension, amounts of money held in bank accounts.
Real estate seizure: refers to immovable assets, for example, houses, flats, lands owned by the debtor, which can be valorised at auction for the recovery of receivable.
5.What costs does the forced execution involve?
According to the provisions of Civil Procedural Code, the forced execution costs are:
– stamp duty necessary for the start of forced execution;
– the bailiff fee,
– the lawyer fee in the stage of forced execution;
– the expert fee, the translator or interpreter fee, if applicable
– costs with the advertising of forced execution procedure and with the performance of other forced execution acts;
– transport costs;
– other costs set out by the law or necessary for the carrying out of forced execution.
The initial forced execution costs are advanced by the creditor, as follows: the stamp duty in amount of 20 lei for writ of execution, the fee advance payment for the bailiff, the tax at the Division of Records of Persons if applicable, the taxes of the Land Book if applicable, and other costs for the start of forced execution.
The debtor is obliged to pay the forced execution costs established or as applicable incurred after the recording of the claim of execution until the date of fulfilment of obligation established in the writ of execution, even if he/she made the payment voluntarily.
Thus, even if the initial costs are advanced by the creditor, they will be recovered from the debtor.