Zeman signed a law on the termination of multi-year enforcement proceedings

Long-term unpromising judicial enforcement proceedings (executions) can be terminated from 2023. The seizure of movable property will be partially limited, and the procedure for repaying the debt will also change. The corresponding amendments to the law were signed today by Czech President Milos Zeman.

According to experts, the new law represents the biggest changes in the field of judicial enforcement proceedings over the past two decades. However, the Trial Chamber intends to appeal to the Constitutional Court if the bailiffs are not entitled to reimbursement of costs in case of unsuccessful proceedings.

The law establishes a six-year period after which the executor will terminate the proceedings, subject to certain conditions. Unsuccessful executions can be extended twice more, for up to 12 years. The current six-year and longer processes could be terminated in 2023, that is, one year after the amendment enters into force.

In some cases, timelines may be extended, for example, when execution is delayed. The new rule will not apply at all to reimbursement of such material claims as, for example, alimony.

In addition to the legal costs of enforcing the decision, the debtor will have to return the money in the following order: first, the principal amount of the debt, then interest for delay and, finally, reimbursement of the creditor’s expenses. There should not be a case when the interest rate grows faster than the debtor is able to repay the debt.

The amendment will restrict enforcement proceedings against pensioners and disabled people, as well as the recovery of children’s debts.

According to the law, penalties for debts on health insurance and social insurance have been reduced. The amendment also establishes the obligation of the bailiff to record telephone conversations related to enforcement proceedings and allows the delivery of enforcement documents in electronic form.

Source: ceskenoviny.cz

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