The Enforcement and Collaterals Act ("Enforcement Act") was adopted on 17 May 2011, and shall be applicable as of 17 September 2011, save for the provisions relating to the private enforcers which shall become applicable as of 17 May 2012. The aim of the Enforcement Act is to enhance efficiency of enforcement proceedings, which were often drawn out, complicated and ineffective.
Private Enforcement
One of the most significant features of the Enforcement Act is the introduction of private enforcement into the Serbian legal system. The Enforcement Act, in addition to the existing court enforcement, envisages private enforcement through professional enforcement officers appointed by the Minister for Justice.
Enforcement Instruments
The list of documents which can be used as enforcement instruments has been broadened (e.g. mortgage statement or mortgage agreement, European Enforcement Order or reorganisation plan in bankruptcy proceedings). Furthermore, it allows for enforcement on the basis of enforceable foreign documents.
Notice Service
The notice service procedure, previously a very important and frequently employed tool on the part of enforcement debtors, has been improved and leaves less room for intentionally created delays. In addition, a debtor may not prolong the procedure by requesting recusal of the presiding judge.
Failure to Furnish Evidence
The court can impose a prison sentence if the debtor fails to furnish the court with evidence supporting the statement of his/her assets.
Simplified sell-off procedure
The procedure for selling movable property and real estate has been simplified. The sale shall be conducted by professional enforcement officers appointed by the Minister for Justice whereby there are provisions for a debtor's entire property to be sold off.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
