Debt Collection Attorney in Croatia: What You Need to Know

Enforcement on the basis of an authentic document

Authentic documents are documents that have a lower level of legal force. Such are invoices, statements of open items, bills of exchange or cheques. The law presupposes that authentic documents are true. However, such documents can be challenged. It can be proven that they are not really credible. For example, that the service from the invoice has not been performed, that it has been paid, that it is outdated, and so on. A debt collection attorney can help you help you identify whether an authentic document complies with the law.

Enforcement based on an authentic document is initiated through the e-enforcement system, which speeds up the entire procedure. After filing an application for enforcement, the notary first serves a notice of enforcement on the debtor, with a deadline of 15 days to voluntarily settle the debt. If the debtor fails to pay the debt, the notary public issues a writ of execution. The debtor has the right to file an objection against this decision within 8 days of receipt.

Objection against the writ of execution

An objection against a writ of execution must contain basic elements such as the personal data of the parties, the case number, the notary’s designation, and the like. The most important thing is to clearly explain why the decision is considered to be illegal or unfounded, i.e. whether the debt is contested in whole or in part.

After filing an objection, the enforcement case is forwarded to the court conducting civil proceedings. In this process, each party must prove its claims. The creditor must prove the existence of the debt, while the debtor must prove that the debt does not exist or is not in debt. It is noted here that the so-called burden of proof is always on the creditor. The creditor must primarily prove that the debt exists. However, if the debtor believes that the debt does not exist, then the debtor must actively participate in the proceedings and propose all evidence to refute the creditor’s claims.

Enforcement on the basis of an enforceable document

An enforceable document is a legal document that has a very high legal force, such as a judgment or court ruling, a promissory note or notarial deed, or a solemnized private document. Enforcement documents are considered to be undisputed and that the debt established by them is undisputed. Only in exceptional cases can it be proved that there is no claim established by an enforceable document, and there must be solid evidence for this. Enforcement based on an enforcement document speeds up the procedure because there is no need for additional evidence. A debt collection attorny can help you obtain an enforceable document.

Foreclosure on real estate

Foreclosure is the process of forcibly selling a property to collect a debt. This procedure is necessarily carried out as a court procedure. The procedure includes the submission of a proposal for enforcement, an assessment of the value of the property by an expert and a public auction. This process can be lengthy and complex, so the help of a foreclosure lawyer is often required to ensure that the rights of all parties are respected. Enforcement on real estate cannot be initiated if the debt is less than EUR 5300.00. If the debtor is still in the property after the sale of the property, then it is necessary to carry out the emptying procedure, i.e. evictions. These are very sensitive procedures that often involve the involvement of a large number of people, often the police. A debt collection attorney is specialized for this kind of procedure.

Enforcement of movable property

Enforcement of movable property involves the forced collection of a debt through the seizure and sale of movable property. The procedure includes the submission of a proposal for enforcement, inventory of property, seizure of property and its sale at public auction. This process can also be complex and awkward as it involves the bailiff entering the debtor’s home. That is why it is advisable to consult a foreclosure lawyer to avoid unwanted situations.

Enforcement by seizure of bank accounts

Out-of-court enforcement can be carried out by submitting an enforcement document to the Financial Agency (FINA). FINA will check whether the enforcement document is valid and then block and seize all bank accounts that the debtor has in Croatia. This procedure is conducted without the involvement of a court. A debt collection attorney can check whether this kind of seizure was legal.

Wage garnishment

This procedure is also conducted without the involvement of a court. A creditor who has a final and enforceable decision generally on the debtor’s property can simply deliver that decision to the employer, and the employer is then obliged to seize the debtor’s salary and forward the money to the creditor. The employer is put in an unenviable position here because he has to worry about the legal restrictions on wage garnishment. A similar enforcement is a pension enforcement that is submitted to the Croatian Pension Insurance Institute.

Compulsory mortgage insurance

Sometimes, when creditors have low receivables and cannot collect them in the above ways, they decide on the so-called forced mortgages. This is possible in a situation where the debtor already has blocked accounts and other income, but has real estate. With such compulsory insurance, the creditor receives insurance that the receivable will be collected at the moment when the owner of the property wants to sell it, because no one wants to buy a property that has some encumbrances on it.

Conclusion Foreclosures are a complex legal process that requires careful planning and professional assistance. Whether it is an execution based on an authentic document, an enforcement document, or enforcement on real estate and movable property, it is important to have professional support. A foreclosure lawyer can help protect your rights and ensure that the process is fair and transparent. If you are facing foreclosure, contact a foreclosure lawyer to get the legal assistance you need;