April 04, 2020

Enforcement: Suspension of enforcement against physical persons

On April 18th 2020, the Act on supplementing the Act on Enforcement on monetary assets (hereinafter: Act) is legally effective. This Act will seek to ease the position of natural persons under enforcement due to Covid-19 crisis. Below we present the Government’s proposed measures aimed at making it easier for individuals who bear the negative consequences of the current situation. Here is a summary of legislative changes:

1. FINA shall suspend enforcement of funds on the accounts of natural persons during the course of special circumstances. As an exception to this, FINA will carry out the enforcement procedure if, during special circumstances, the condition for transferring the funds seized before the occurrence of the special circumstances, occurs.

2. The enforcement is being suspended for 3 months.

3. There will be no default interest during the special circumstances and FINA will not calculate the default interest determined on the basis of payment for the period of special circumstances

4. The suspension of enforcement shall not apply to:

  • enforcement to settle a claim for legal child support,
  • other claims when enforcement is carried out to settle future installments when due,
  • claims on matured but unpaid salaries, salary compensation or severance pay, if it is about the case of criminal proceedings, and
  • in case of enforcement by specific purpose account.

5. After the suspension of enforcement, if there is no basis for payment on which the execution of the enforcement is continued, the accounts of the debtor shall be unblocked in order to be able to dispose with his funds in the account.

6. FINA’s actions during special circumstances:

  • FINA will receive basis for payment, but will not send them to banks for execution – it will only record them in the Register of the order of basis for payment.

7. During the period of special circumstances, no time limit shall be applied for the duration of the account suspension, except for the time limit for the transfer of confiscated funds, which shall be calculated from receipt of the basis for payment to the Agency.

8. FINA will send an order for unblocking the account within 10 days, if the debtor does not have any basis for payment after the suspension of enforcement.

The Proposal supplements Art. 25 of the Law on Enforcement on financial assets with a provision on FINA’s irresponsibility for irregularities in the enforcement procedure, if it occurred because of incorrect or incomplete information provided by the obliged parties to submit data to the Single Register of Accounts or Data submitted by the competent authorities.




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