Enforcement and bankruptcy law is a technical field that enables the creditor to reach their entitlement as quickly as possible, while allowing the debtor to make full use of the rights of defence afforded by law. Command of procedural rules is decisive in collecting a receivable or in halting an unjust proceeding.
Scope of Our Service
Bilkay Legal initiates, conducts, attaches and sells in all manner of enforcement proceedings for individuals, companies and financial institutions; on the debtor's side, it provides legal support in defending against enforcement proceedings, in actions for annulment, and during the restructuring process.
Our Principal Practice Areas
- Enforcement without a judgment (monetary and collateral receivables)
- Enforcement based on a judgment
- Proceedings specific to negotiable instruments
- Rent receivable and eviction enforcement
- Attachment, custody and sale transactions
- Annulment of objection and removal of objection actions
- Negative declaratory and recovery actions
- Attestation (entitlement) claims
- Actions to set aside a sale at auction
- Composition with creditors (concordat) processes
- Bankruptcy action and postponement of bankruptcy
- Actions to annul a debtor's disposition
Debt Collection and Enforcement Proceedings
The first step in collecting a receivable is choosing the correct type of proceeding. Proceedings specific to negotiable instruments are used for receivables tied to a bill; enforcement based on a judgment is used for receivables resting on a judgment or a document of the nature of a judgment; and enforcement without a judgment by way of general attachment is used for other monetary receivables. Choosing the right avenue directly affects the speed of collection, the cost and the time it takes for the result to become final. Our office professionally conducts every stage of the proceeding, from service of the payment order through attachment and sale to the distribution of the proceeds.
Legal Defence on the Debtor's Side
Objection to the proceeding, objection to the signature or the debt before the enforcement court, annulment of the enforcement proceeding, and negative declaratory and recovery actions are important defensive tools at the debtor's disposal. Observing procedural rules and the short objection periods is critical to preventing the loss of rights. Our office defends against unjustly initiated proceedings and promptly invokes the necessary legal avenues to protect assets under threat of attachment.
Deadline warning: In an enforcement proceeding, the period for objecting to the payment order is only 7 days (5 days for negotiable instruments). Missing this period leads to the proceeding becoming final without objection and to attachment. It is critically important to obtain legal advice as soon as possible after service of the proceeding.
The Process After Composition and Postponement of Bankruptcy
For companies experiencing temporary payment difficulties, composition with creditors offers an important means of restructuring debts and avoiding bankruptcy. Following legislation enacted after 2018, the postponement of bankruptcy was abolished and composition became the principal remedy in this area. A composition application requires a detailed project showing the debtor's present and future financial position, together with an independent audit report. Our office follows the entire process, from preparing the composition project and requesting a moratorium to the creditors' meeting and court approval.
Bankruptcy Action and Annulment of Dispositions
A bankruptcy action may be brought against persons holding the status of merchant who are unable to pay their debts. On the creditor's side, a bankruptcy action may be brought directly or following a proceeding, and it is one of the ways of reaching a receivable. Sales and gifts made by the debtor shortly before the enforcement proceeding may be rendered void through an action to annul the disposition. This action is a powerful legal tool, particularly against debtors who attempt to obstruct collection by transferring their assets to third parties.
Frequently Asked Questions
How long does it take to obtain a result in an enforcement proceeding?
If the debtor does not object, the payment order becomes final and, at the end of the 7-day period, the proceeding moves to the attachment stage. If there is an objection, an action for annulment of objection is brought, which may extend the process to between 8 and 18 months. The speed of obtaining a result depends on the nature of the document on which the receivable rests, the debtor's assets, and the workload in the judicial district.
May my entire salary or pension be attached?
Only one quarter of a worker's salary may be attached; pensions, as a rule, cannot be attached, although maintenance receivables fall outside this limit. In addition, basic household items, family photographs and religious books, among other personal belongings, are exempt from attachment. Determining which assets may be attached in a given debt relationship requires a technical assessment.
What conditions must I meet to apply for composition with creditors?
Composition is an avenue open to debtors who are unable to pay their debts when due or are close to that position. To apply, you need a realistic composition project, a current and projected balance sheet, an income statement, and a reasonable-assurance report from an independent audit firm. Sole proprietorships and individual merchants may also apply for composition.